As Blockchain corporations Sigma Chain signaled the re-release of Cyworld, controversy erupted over the storage status and recoverability of existing user data.
According to a Yonhap News report on the 17th, former CyworldZ CEO Kim Ho-kwang said on the 14th that he visited the LG Internet Data Center (IDC) in Gasan-dong, Geumcheon-gu, Seoul, and checked the Cyworld servers. Kim said that while power was being supplied to some server racks, some equipment was stored detached from the racks.
According to a Q&A with an IDC official released by Kim's side, server usage fees have long been in arrears. Kim said he could not confirm that Sigma Chain had changed the existing IDC contract or conducted separate consultations related to the servers. He added that he was told technical due diligence to assess the condition of the equipment would be difficult until the arrears issue is resolved.
He urged swift inspection and recovery work, saying that solid-state drives (SSDs) with power cut off for a long time can be affected in terms of data retention depending on storage conditions and device status. Kim said, "To safely preserve user data, we need to check the server status first," and demanded specific data protection measures from Sigma Chain.
Sigma Chain recently announced at a press briefing that it acquired Cyworld intellectual property (IP), trademarks, and data from Cy Communications. It said it has secured the technical capability and funding to restore about 17 billion existing data points by deploying its in-house developers. However, the primary domain "cyworld.com" was excluded from the acquisition due to legal disputes.
The company plans to unveil a beta service in Oct. focusing on friend connections and feed features, then launch its full service in the first half of 2027. After identity verification, users will be able to find past accounts and records, and legacy features such as Minihompy, photo albums, music, and Ilchon will be expanded in stages. The data targeted for restoration, including photos and posts, is known to total about 3.8 petabytes (PB).
Cy Communications took over CyworldZ's business rights and assets in Nov. 2024 and sought to normalize the service but faced funding shortages and executive resignations. Afterward, Sigma Chain secured the related IP and moved to re-release the service, but with Kim's side challenging the procedures and validity of the transfer of business rights, the two sides' claims are at odds. With data preservation issues added to the business-rights and domain disputes, attention is on whether the re-release schedule can proceed as planned.