Former Galaxy executives misappropriated at least $3.67 million of investor funds from Zero Edge
ChainCatcher news, according to CoinDesk, former Galaxy executive Richard Kim stated in an interview that after raising $7 million in seed funding for Zero Edge less than a month ago, Kim engaged in leveraged cryptocurrency trading and suffered significant losses due to the decline in Bitcoin prices in June. After Kim admitted to misappropriating at least $3.67 million of Zero Edge's company funds, Galaxy became one of several victim investors.
A spokesperson for Galaxy stated, "Kim left Galaxy in March 2024 to found Zero Edge, and Galaxy made a small investment on the balance sheet of this company. After learning about certain actions Kim took during his tenure at Zero Edge, we, along with other investors, reported his actions to the authorities."
Kim stated that he also reported himself to the U.S. Securities and Exchange Commission's public reporting hotline and submitted his resignation to Zero Edge and its board on July 2.
