Cryptocurrency pioneers, Mike Novogratz, has hired Richard Kim, an executive at Goldman Sachs s it’s the new chief operating officer for his merchant bank, Galaxy Digital. This is according sources close to the matter.
Kim, who, according to his LinkedIn profile is an executive director at Galaxy Digital in its London office, is joining a former hedge-fund analyst of Goldman Sachs. The exit of Kim, which was first reported by Bloomberg News adds to the many high-profile transitions which have occurred from Goldman Sachs to cryptocurrency start-ups.
In January, BlockTower Capital hired ex- Goldman executive Michael Bucella. Matt Goetz, the former vice president at Goldman founded BlockTower in 2017. Before moving to work in strategic investing at a cryptocurrency company, James Radecki worked as the managing director at Goldman. He left the bank in 2016 according to his LinkedIn profile. He now works as the global head of business development Cumberland Mining, which is one of largest cryptocurrencies traders.
A spokesperson at Galaxy declined to give a comment on the purported hiring. In an earlier statement to news reporters, Novogratz, who was an employee at Goldman Sachs in the 1990s, said that the firm had hired one of the best guys that Goldman had in blockchain. It remains unclear if he was making reference to Kim of another executive.
The rise of bitcoin to near $20,000 at the close of last year has attracted several other Wall Street traders as well as an increase in hedge funds in the crypto industry. The number of operating crypto funds has gone up to 245 since the start of this year. This is compared to the 167 that were operational last year and just 19 in 2016.
Galaxy Digital specializes in managing assets for blockchain-related companies including cryptocurrency. Novogratz, who initially worked at Fortress Investment Group but left in 2015 after the group lost money, said that bitcoin may go up four folds the close of this year. Prices of bitcoin have been down 52% since the start of this year. The whole digital currency market has lost over half of its market capitalization since the start of the year.