According to Foresight News, a senior executive from Kakao’s subsidiary is suing GroundX, the blockchain division of the South Korean internet company, for approximately 10 billion won (around $7.6 million). The lawsuit arises from a hacking incident involving the Klip crypto wallet, which is integrated into the Kakao Talk messaging app.

The breach occurred in March 2022, when the executive’s Kakao Talk account was hacked, leading to the theft of cryptocurrency that was subsequently transferred to overseas exchanges. During the ongoing legal proceedings, a Kakao spokesperson noted that the company is currently engaged in an integration and optimization process for GroundX, resulting in a temporary shortage of personnel to effectively manage the situation.