Richard Kim, founder of Zero Edge crypto casino, was arrested for fraud after misusing $7 million from investors. Instead of developing the casino, he lost most of the funds through risky trades and gambling. Kim, who has a significant financial background, attributed his actions to a gambling addiction triggered by a phishing scam. He now faces securities and wire fraud charges, having been released on bond.
Richard Kim, founder of the crypto casino Zero Edge, was arrested on fraud charges after allegedly misappropriating millions raised from investors. A complaint by the FBI in the Southern District of New York accuses him of deceitfully encouraging investment into his venture, with promises of fair and transparent gaming, while instead risking nearly all of the $7 million in high-risk trading and gambling activities.
Kim’s professional background includes roles at notable financial institutions such as Galaxy Digital, JPMorgan, and Goldman Sachs. He also practised law at Cleary Gottlieb, providing investors with confidence in his management abilities. However, Kim’s downfall began following an $80,000 loss due to a phishing scam, which reignited a gambling addiction and led to reckless financial decisions.
In previous admissions, Kim disclosed losses exceeding $3.67 million from speculative crypto trading. He even approached the U.S. Securities and Exchange Commission (SEC) to confess his actions, claiming negligence rather than fraudulent intention. Nonetheless, the FBI alleges he misled investors regarding fund usage, transferring money to gambling sites and engaging in personal trading instead of developing his promised casino, Zero Edge.
Facing charges for securities and wire fraud, Kim was released on a $250,000 bond, needing at least $100,000 in cash or property. Investors, including Galaxy Digital, reported him upon discovering his misconduct, asserting they were unaware of his actions at the time of investment.
