Richard Kim, founder of Zero Edge crypto casino, was arrested for fraud, accused of losing nearly $7 million of investor money in risky trades and gambling. Despite a strong financial background and a lack of intent to deceive, he faces securities and wire fraud charges after misusing funds intended for the casino project.
Richard Kim, founder of the crypto casino Zero Edge, was arrested following allegations of fraud involving investor funds. The FBI’s complaint outlines that Kim persuaded investors to finance his venture, with promises of creating a fair and transparent gaming platform. Instead, he is accused of misusing nearly all of the $7 million raised through risky cryptocurrency trades and personal gambling on various platforms.
With an impressive background that includes stints at Galaxy Digital, JPMorgan, and Goldman Sachs, Kim garnered significant trust from investors. His professional pedigree suggested a proficient management of funds, yet this trust waned after he reportedly lost $80,000 due to a phishing scam, which subsequently exacerbated his gambling addiction and led to a series of reckless financial decisions.
In previous interviews, Kim disclosed that his trading habits resulted in losses exceeding $3.67 million. He took the initiative to approach the SEC, admitting his negligence in managing investor funds. Despite maintaining that his actions were not intended to deceive, the FBI claims he misrepresented the usage of funds, directing them to gaming sites and personal crypto investments instead of the casino project.
Kim is now charged with securities fraud and wire fraud, having been released on a $250,000 bond, including a $100,000 cash requirement. Galaxy Digital, a significant investor, stated they were unaware of Kim’s misconduct until after the concerns were raised, leading them to report him.
