According to Odaily, a South Korean court has issued an arrest warrant for Kim Bum-soo, the founder of Kakao, the operator of the country's leading instant messaging application. Kakao also manages blockchain project Klaytn and cryptocurrency wallet Klip. Earlier this year, Kakao Pay announced the termination of its cryptocurrency asset services as of February 16.

The arrest warrant follows a complaint filed by the South Korean civic group 'Economic Democracy 21' with the Seoul Southern District Prosecutors' Office's Virtual Asset Crime Investigation Unit. The complaint accuses Kim Bum-soo and executives associated with Klaytn of violating the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement and misappropriation of public funds) and the Capital Markets Act. Subsequently, South Korean prosecutors launched an investigation into the allegations of embezzlement and misappropriation of public funds involving Kakao's former chairman and Klaytn-related executives.