A senior executive at Kakao is suing the company's blockchain division GroundX for $7.6 million in losses due to an attack on their cryptocurrency wallet

ChainCatcher news, according to IT Chosun, an executive from a subsidiary of South Korean internet giant Kakao is suing Kakao's blockchain division GroundX, claiming approximately 10 billion won (7.6 million USD).

This legal action stems from a cryptocurrency hacking incident involving the integrated crypto wallet Klip in the Kakao Talk messaging app. The hacking incident 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 spokesperson for Kakao stated that the company is currently optimizing the integration of GroundX and lacks sufficient personnel to handle the situation.