In a statement posted to Twitter, the founder said he had become "incredibly addicted to gambling."
"Every dollar I could find I would put into [crypto casino] Stake in hopes of winning big," he wrote. "Even when the big wins did happen it wasn’t enough. Eventually, I lost everything. In addition to my own life savings, I also irresponsibly used investor funds to try and 'get my money back' from the casino, which was wrong for so many reasons."
"I am now completely broke both financially and spiritually. My sense of trust in myself is compromised," he added, saying that he was working with a help group to begin a "path to recovery."
The news recalled other crypto projects, including NFT launchpad Onepad, that were forced to shutter after its founder gambled away funds.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.