Former Galaxy Digital executives Richard Kim, Goldman Sachs and JP Morgan were arrested after allegedly losing nearly $7 million.
Richard Kim, founder of Cryptocurrency Project Zero Edge, lost nearly $7 million he collected on behalf of Zero Edge while gambling.
A study conducted on Kim found that he used a significant portion of the money he collected from investors in risky leveraged transactions, losing about $670,000, about $3 million on the betting site.
It was also reported that Kim provided misleading information to investors while raising funds, embezzled the funds and directed the gambling platform to a large portion of the funds.
“I first lost $80,000 in a phishing scam. I succumbed to my weaknesses and tried to recover my losses and protect my reputation. But I ruined it,” Kim said.
In a statement following the event, Galaxy spokesman Michael Worthorne said Richard Kim left the company in March 2024 to establish Zero Edge and “as soon as he noticed Kim’s actions, he reported the situation to competent authorities.”
*This is not investment advice.
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