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Former Galaxy Digital partner apologizes for gambling away investor funds

Richard Kim, a former general partner at Galaxy Digital (TSX: GLXY), a prominent cryptocurrency firm headed by Michael Novogratz, has found himself at the center of a financial scandal. Kim, who left Galaxy in March to start Zero Edge, a crypto casino startup, has admitted to misappropriating at least $3.67 million of company funds.

Zero Edge, pitched as a first-of-its-kind crypto casino aimed at providing transparency and equal odds to gamblers, raised over $7 million in a seed funding round. Investors, including Galaxy Digital, were optimistic about the venture’s potential. However, within days of securing the funds, Kim began placing risky leveraged bets on cryptocurrencies.

You can read more on the matter here.

What’s going on?

• Quebec Minimum Payment Law Linked To Higher Credit Card Delinquency (theDeepDive)

• IMF says U.S. should raise taxes, wait until late 2024 to cut rates (Reuters)

• Canada To Go After Monopoly In Digital Wallets, Urges Competition Bureau To Act (theDeepDive)

• Biden under new pressure from top Democrats as Covid halts campaign (Globe)

• Trump Media Merger: Ex-DWAC CEO Charged With Fraud In Merger Deal (theDeepDive)

• Penn lays off about 100 employees as it focuses on ESPNBet growth (CNBC)

• Is Rio Tinto Eyeing Potential New Copper Acquisitions? (theDeepDive)

• Russia says 'let's be realistic' about Trump plan to end Ukraine war (Reuters)

• Gold’s Perfect Storm: Rate Cuts Amid Inflation With Lobo Tiggre of Independent Speculator (theDeepDive)

• OpenAI Releases GPT-4o Mini, a Cheaper Version of Flagship AI Model (Bloomberg)

• Restarting Sudbury’s Crean Hill Nickel & Copper Mine with Paul Fowler of Magna Mining (theDeepDive)

What’s the latest?

• ETH ETF’s: The competition for potential Ether ETF assets is already heating up, with issuers like BlackRock, Fidelity, Invesco, and Bitwise submitting filings to the SEC detailing their fees in anticipation of launching Ether ETFs. The proposed fees range from 0.19% by Franklin Templeton to 2.5% by Grayscale Investments.

• Liberal Scramble: Canadian Prime Minister Justin Trudeau has reportedly urged Mark Carney, the former governor of the Bank of Canada and Bank of England, to join his Liberal government. Carney was non-committal about entering politics, and no specific cabinet position was offered. If Carney joins, he would need a seat in the House of Commons, potentially through a byelection or in the general election due next year.

• Ford Canada: Ford Motor Co. plans to assemble its F-Series Super Duty pickup trucks at its Oakville, Ont. assembly plant starting in 2026, adding up to 100,000 units and supporting 1,800 jobs. This move comes amid delays to the plant's planned electric vehicle production, now pushed back to 2027.

• Semi Demand: Taiwan's TSMC, the world's largest contract chipmaker, raised its full-year revenue forecast due to surging demand for AI chips and rejected the idea of a joint venture factory in the United States. TSMC's CEO C.C. Wei noted that AI demand is driving customers to integrate AI functionality into their devices. The company raised its 2024 revenue forecast to growth in the slight to above mid-20% range in U.S. dollar terms.

• Prime Day: Online spending in the U.S. surged 11% year over year to $14.2 billion during Amazon’s 48-hour Prime Day event, surpassing estimates and setting a new record, according to Adobe Analytics. Numerator noted that shoppers spent more per order this year, with an average order size of $57.97, though there was a shift towards more conscious shopping and fewer big-ticket item purchases.

Yukon's untapped gold potential

The stock market and stuff

• Philip Morris International to Build $600M Zyn Factory in Colorado (theDeepDive)

• Meta in talks to buy 5% stake in Ray-Ban maker EssilorLuxottica (Reuters)

• Cassava Sciences Replaces Entire Management Team Amid Data Falsification Scandal (theDeepDive)

• Craig Wright Faces Potential Prosecution Over False Bitcoin Inventor Claims (theDeepDive)

In the juniors

• Golden Cariboo Hits Visible Gold In New Discovery At Quesnelle Gold Property (theDeepDive)

• Canada Nickel Releases Initial Resource Estimate For Deloro Nickel Project (theDeepDive)

• Rua Gold To Raise $8.0 Million To Fund Exploration Of Prolific Reefton Goldfield (theDeepDive)

• Hydrogen Tech Developer Loop Energy Files Notice Of Intention Under Bankruptcy And Insolvency Act (theDeepDive)

• Joe Sexton: Enhancing Plurilock’s Vision with Decades of Experience (theDeepDive)

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