Galaxy’s former executives embezzled at least $3.67 million of investor funds from Zero Edge, which they founded. The victims included Galaxy

According to CoinDesk, Richard Kim, former executive of Galaxy, stated in an interview that he engaged in leveraged cryptocurrency trading after raising $7 million in seed funding for Zero Edge less than a month ago. Due to the drop in bitcoin prices in June, Kim suffered heavy losses. After admitting to misappropriating at least $3.67 million of Zero Edge's company funds, Galaxy became one of the victims and investors.

A Galaxy spokesperson stated, "Kim left Galaxy in March 2024 and founded Zero Edge. Galaxy made a small investment in the company's balance sheet. After learning about some of the actions Kim took while at Zero Edge, we reported his behavior to the authorities along with other investors." The spokesperson declined to disclose the size of Galaxy's investment in Zero Edge. Kim stated that he also reported himself to the public reporting hotline of the US Securities and Exchange Commission and submitted his resignation to Zero Edge and its board on July 2.