Kakao Founder Kim Beom-soo Arrested on Suspicion of Stock Manipulation, Embezzlement, and Breach of Trust

IconCryptoNewsTerminal Staff22 Jul, 2024

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Kakao Founder Kim Beom-soo Arrested on Suspicion of Stock Manipulation, Embezzlement, and Breach of Trust

Kakao founder Kim Beom-soo was arrested by the prosecution on February 23rd on suspicion of stock manipulation, embezzlement, and breach of trust. Kim is considered the "mastermind" behind the alleged stock manipulation that occurred during Kakao's acquisition of SM Entertainment. The prosecution alleges that Kim and other Kakao executives manipulated the stock price of SM Entertainment by creating a new cryptocurrency, KLAY, and then selling it to investors. The funds raised from the sale of KLAY were allegedly embezzled instead of being used for related businesses. Kim is also accused of embezzling cryptocurrency and breaching his fiduciary duty to Kakao. The arrest of Kim has sent shockwaves through the cryptocurrency market, and the price of KLAY has dropped significantly since the news broke. This is a developing story, and more information will be released as it becomes available.

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