The South Korean prosecution has launched an investigation into allegations of embezzlement of virtual currency against the former chairman of Kakao and executives of affiliated companies

ChainCatcher news, South Korean prosecutors have begun a comprehensive investigation into former Kakao chairman Kim Beom-soo (phonetic) and Kakao executives for allegations of embezzlement of virtual currency and breach of trust.

The prosecution has transferred the case to the Southern District Prosecutors' Office's Joint Investigation Team for Virtual Asset Crimes and conducted the first plaintiff investigation on the 11th. On that day, prosecutors inquired in detail about the main allegations of the plaintiff, the legal background, and the amount of damages. It is reported that the prosecution also requested the plaintiff to submit additional data regarding the cryptocurrency Klay transaction details of Kakao affiliate executives.

On the 13th of last month, former Kakao chairman Kim Beom-soo and executives of Kakao affiliates were indicted for embezzlement and breach of trust. The reason is that Kakao created the virtual currency "Klay" through its subsidiary, raising funds by selling it to investors and embezzling the proceeds. If fraudulent transactions as defined by the Capital Markets Act are confirmed in the allegations, investors who invested during this period can seek compensation for losses caused by the criminal acts.