I have read many news that someone will mismanage people's money. I read one about a university student some years ago that gambled with the money contributed by his course mates. The main reason that is causing the money mismanagement is either trading or gambling, but I read more about gambling online. Some can be because of other reasons.
I think the students appointed the wrong person for money contribution, most often you don't give money a group money to a student who is into gambling, there is always a desire to use the money to gamble with the sense of paying back after winning the money. They are broke most of the time and gambling is the only thing the see as alternative to make money when they don't have alternatives to money.
There was a time in my school when we resumed Back to school but went to a month strike. After resumption, they found out that more than 50% of students couldn't pay their school fees later because they have consume everything and many were as a result of gambling, some of them didn't go home and when they became broke, they risk it to gambling.
There is another one that I read today that people thought he ran away with people's money but he later confessed that he lost it to gambling. It is about a solana-based cypher developer, he confesses that he lost $300K of user funds to gambling.
This one is strange, a whopping 300k into gambling only says one thing about the person, he is a pro gambler that is very addicted to gambling. If he has invested that money instead of gambling, he might accrue a loss but I'm bit sure everything would have finished so fast. If he has eaten the money, it will even pay him than gambled everything for nothing.