Kaia, the integrated blockchain platform by Kakao and Line, faces delays in its launch due to legal issues involving key executives, though the company remains optimistic about overcoming regulatory hurdles and moving forward with its plans.
This follows the arrest of Kakao’s Executive Chairman Kim Beom-soo and an investigation by prosecutors into embezzlement and breach of trust allegations involving key personnel related to Klaytn, which is set to be integrated into Kaia. However, Kaia has dismissed concerns over legal risks, stating that the technical preparations are complete.
Seo Sang-min, the director of Klaytn, mentioned that they are in communication with regulatory authorities and have received recent updates indicating that the foundation’s launch approval is nearly complete, suggesting that the process will not take much longer.
This statement addresses concerns that the foundation’s launch might be further delayed due to legal risks, including Kim’s arrest. Kaia had earlier applied to establish the foundation in Abu Dhabi, UAE. The foundation’s establishment is essential for Kaia to begin listing coins and initiate various business activities in earnest.
Kaia is a blockchain platform that integrates Klaytn, developed by Kakao’s subsidiary Ground X, and Finsiya, created by Line. The combined market capitalization is around $1 billion, making it the largest platform in Asia. The integration of Kakao and Naver has attracted significant attention domestically and internationally.
Kaia initially announced that the foundation would be established by the end of June. However, the delayed foundation launch has raised concerns about potential issues in the integration process. Additionally, the prosecutor’s investigation into Klaytn executives for embezzlement and breach of trust has led to speculations about delays in the foundation’s launch.
Kaia has maintained that legal risks are not a problem. Director Seo explained that they were ambitious when they started the integration, and simulations indicated that a launch by the end of June was feasible, though it has taken longer than expected. He emphasized that the delay in the foundation’s launch is not due to internal issues and added, “We are building a positive rapport with regulatory authorities.”
Regarding Kim’s arrest, Seo stated, “While it’s difficult to say there has been no impact, as Kakao has been approaching business more cautiously, Klaytn operates as a separate entity making independent decisions.” Kakao has withdrawn from operating Klaytn since last year. However, as Kakao remains a service provider, it will continue to be a key participant in Kaia’s future projects, according to Seo.
On the allegations of embezzlement and breach of trust against Klaytn executives, Seo suggests that the accusations might be based solely on rumors without solid evidence. He also addressed suspicions of money laundering involving Klaytn, saying, “It’s simply a matter of verifying the transparent ledger of the blockchain. To my knowledge, there has been no crime or money laundering.”
Currently, Kaia has launched the ‘Kaia Wave’ program for blockchain developers. Once the foundation is officially established, projects will commence in full swing.
