Betalabs Warns Against 'Cyworld 3.0' Press Conference

▲ Photo: Betalabs

As Sigma Chain Co., Ltd. is scheduled to hold a press conference in Myeongdong, Seoul on the 10th to announce the 'Cyworld Acquisition Completion' and 'Cyworld 3.0' business plan, Betalabs Co., Ltd. (CEO Kim Ho-kwang), a major shareholder of Cyworld and a creditor with a confirmed Supreme Court ruling, has pointed out legal flaws in the acquisition claim and urged investors to exercise caution.

Betalabs stated in an official position on the 8th that "Sigma Chain's announcement of 'Cyworld acquisition completion' is based on an illegal asset transfer that disregards the Supreme Court's final ruling and the court's provisional injunction to prohibit disposition, and thus has no legal effect."

■ Supreme Court Confirmed 13.7 Billion Won Debt and Omission of Special Resolution at General Meeting of Shareholders

In 2021, Betalabs invested 2.5 billion won in Cyworld Z, becoming a major shareholder with a 15.21% stake and an exclusive partner for blockchain business. However, a lawsuit proceeded due to Cyworld Z's failure to implement self-rescue measures and unauthorized disposal of assets. In January, the Supreme Court finally ruled that Cyworld Z and others must jointly pay Betalabs 13,739,550,000 won plus legal interest (Case No. 2025da217181).

Betalabs pointed out procedural invalidity, stating that "while Cyworld Z was in a state of enormous debt, the multi-stage transfer of core assets, including the domain and business rights, through Cy Communications and Sonid (now JK Synapse) to Sigma Chain did not go through the special resolution of the general meeting of shareholders stipulated in Article 374 of the Commercial Act, and even failed to notify Intromedic, the major shareholder, and Betalabs, a key shareholder, of the meeting."

■ Seoul Central District Court's Provisional Injunction Prohibiting Domain Disposition and Ongoing Criminal Investigation

Specifically, the 60th Civil Division of the Seoul Central District Court issued a provisional injunction on April 30, 2025, prohibiting any dispositional acts, such as sale, transfer, or establishment of lease rights, concerning the cyworld.com domain (Case No. 2025kahap20615). Betalabs explained that pursuing business based on assets with restricted legal disposition violates a valid court decision. Furthermore, Betalabs considers these successive asset transfers to be acts of asset concealment aimed at evading compulsory execution, and has filed a criminal complaint with the Seoul Metropolitan Police Agency against the relevant parties for violating the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (breach of trust and embezzlement) and evasion of compulsory execution, with an investigation currently underway.

■ "Issuance of Coins and Investment Attraction in an Undetermined State of Rights Relations, Concerns for Investor Damage"

Kim Ho-kwang, CEO of Betalabs, emphasized, "In a situation where the business transfer itself could be nullified depending on the outcome of the main lawsuit and the subrogated action by creditors, if new coin issuance or investment attraction is pushed through, good-faith investors and users could suffer severe financial losses." He added, "Journalists and investors are urged to verify the publicly available court case numbers and exercise extreme caution."