PANews reported on July 16 that according to CoinDesk, former Galaxy executive Richard Kim said in an interview that after raising $7 million in seed round funds for Zero Edge less than a month ago, Kim engaged in leveraged cryptocurrency trading, and suffered heavy losses due to the decline in Bitcoin prices in June. Galaxy became one of several victim investors after Kim admitted to embezzling at least $3.67 million in Zero Edge company funds.
"Kim left Galaxy in March 2024 to start Zero Edge, a company Galaxy has a small investment on its balance sheet," a Galaxy spokesperson said. "After learning of certain actions taken by Kim during his tenure at Zero Edge, we, along with other investors, reported his conduct to the authorities." Galaxy's spokesperson declined to disclose the size of the company's investment in Zero Edge. Kim said he also reported himself to the U.S. Securities and Exchange Commission's public reporting hotline and submitted his resignation from Zero Edge and its board on July 2.
