{"id":15246,"date":"2024-07-16T14:25:13","date_gmt":"2024-07-16T11:25:13","guid":{"rendered":"https:\/\/forklog.com\/en\/former-galaxy-interactive-head-loses-3-6-million-in-crypto-casino-venture\/"},"modified":"2024-07-16T14:25:13","modified_gmt":"2024-07-16T11:25:13","slug":"former-galaxy-interactive-head-loses-3-6-million-in-crypto-casino-venture","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/former-galaxy-interactive-head-loses-3-6-million-in-crypto-casino-venture\/","title":{"rendered":"Former Galaxy Interactive Head Loses $3.6 Million in Crypto Casino Venture"},"content":{"rendered":"<p>The former head of Galaxy Interactive, the venture arm of Mike Novogratz&#8217;s company, lost investor funds intended for the launch of the crypto casino Zero Edge. The sum amounts to $3.67 million out of a total $7 million, reports <a href=\"https:\/\/www.coindesk.com\/tech\/2024\/07\/15\/founders-gambling-struggles-spur-crippling-loss-at-crypto-casino-backed-by-galaxy\/\">CoinDesk<\/a>.<\/p>\n<p>Zero Edge founder Richard Kim suffered significant losses due to leveraged trading following a decline in the bitcoin price in June. He used borrowed funds in his trades. <\/p>\n<p>In a comment to the publication, the entrepreneur stated that he initially lost $80,000 of investments due to a phishing site. Kim had struggled with a gambling addiction for many years, but this incident &#8220;awakened old demons.&#8221;<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;I felt the need to correct my mistakes. Within days, millions were in long positions with leverage. When bitcoin crashed \u2014 it was a complete collapse,&#8221; he said.<\/p>\n<\/blockquote>\n<p>According to Kim, he personally reported the loss of funds to the <span data-descr=\"U.S. Securities and Exchange Commission\" class=\"old_tooltip\">SEC<\/span> hotline.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;[I admitted] that I really messed up. I lost that money. It was gross negligence. But I wasn&#8217;t going to run away with that money,&#8221; he added.<\/p>\n<\/blockquote>\n<p>Kim resigned in early July. Galaxy, which was one of the investors in Zero Edge, also reported the misappropriation of funds to the authorities, describing its investment as &#8220;insignificant.&#8221;<\/p>\n<p>Back in May, a key member of the decentralized exchange Cypher, known as Hoak, <a href=\"https:\/\/forklog.com\/en\/news\/cypher-dex-insider-admits-to-misappropriating-funds\">admitted to misappropriating funds<\/a> stolen in an exploit in August 2023. <\/p>\n<p>He explained his actions as a result of a &#8220;severe gambling addiction.&#8221; <\/p>\n","protected":false},"excerpt":{"rendered":"<p>The former head of Galaxy Interactive, the venture arm of Mike Novogratz&#8217;s company, lost investor funds intended for the launch of the crypto casino Zero Edge. The sum amounts to $3.67 million out of a total $7 million, reports CoinDesk. Zero Edge founder Richard Kim suffered significant losses due to leveraged trading following a decline [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":15245,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1154,770,32],"class_list":["post-15246","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-crimes","tag-galaxy-digital","tag-gambling"],"aioseo_notices":[],"amp_enabled":true,"views":"28","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/15246","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=15246"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/15246\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/15245"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=15246"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=15246"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=15246"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}