ChainCatcher reported that according to IT Chosun, an executive of a subsidiary of South Korean Internet giant Kakao is suing Kakao's blockchain division GroundX for approximately 10 billion won (US$7.6 million).
The legal action stems from a cryptocurrency hack targeting Klip, a crypto wallet integrated into the Kakao Talk messaging app. The hack occurred in March 2022 when the executive's Kakao Talk account was compromised. After the account was breached, the stolen cryptocurrency was transferred to overseas exchanges. During the lawsuit, a Kakao spokesperson said that the company was in the process of integrating and optimizing GroundX and currently lacked sufficient staff to handle the situation.