According to Foresight News, 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 the hack of Klip, a crypto wallet integrated into the Kakao Talk messaging app, in March 2022. The executive’s Kakao Talk account was compromised and the stolen cryptocurrencies were transferred to overseas exchanges.

During the lawsuit, a Kakao spokesperson said the company was integrating and optimizing GroundX and currently lacked sufficient staff to handle the situation.