ChainCatcher news, 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 conducted leveraged cryptocurrency transactions and suffered heavy losses due to the decline in Bitcoin prices in June. After Kim admitted to embezzling at least $3.67 million in Zero Edge company funds, Galaxy became one of several victim investors.
A Galaxy spokesperson said: "Kim left Galaxy in March 2024 to start Zero Edge, a company Galaxy has a small investment on its balance sheet. After learning about certain actions taken by Kim during his tenure at Zero Edge, we, along with other investors, reported his conduct to the authorities."
Kim said he also reported himself to the Securities and Exchange Commission's public whistleblower hotline and submitted his resignation from Zero Edge and its board on July 2.
