A Kakao insider was alleged to have sold Klaytn cryptocurrencies to domestic investors in violation of the company rule and the South Korean ban on initial coin offerings.
KaKao denied the allegation, but one of its Kakao employees was recently fired for violating the company rules. The dismissed employee was pinpointed as the seller of the Klaytn coins. KaKao did neither confirm nor deny whether it dismissed the employee for selling Klaytn coins domestically.
Kakao’s Ground X is a blockchain-based platform which provides enterprise-friendly development environment, optimized computation-speed, and scalability as well as convenience to consumers. Kakao has been developing the platform through cooperation with a few partners.
Ground X has been raising $300 million from overseas investors, either through the private or public sale of Klaytn cryptocurrencies. The fund is to finance the development of its platform.
Since October, Kakao has been running a test net, which is open only to select partners. A KaKao spokesman made it clear that it is not selling any cryptocurrencies domestically. He advised people not to be duped by the scam, which is not related to KaKao, Ground X or any of its subsidiaries.
