Zero Edge, a cryptocurrency gambling platform, Founder Richard Kim Arrested for Embezzling Investor Funds for Gambling

Blockbeats

04-18

BlockBeats News, April 18th, according to a report by CoinDesk, Richard Kim, the founder of the crypto entertainment platform Zero Edge, was arrested on Tuesday for allegedly using investors' funds for gambling.

According to a complaint filed by the Federal Bureau of Investigation (FBI) on Tuesday in the Southern District of New York, Kim "induced investors to invest in his founded cryptocurrency company Zero Edge through fraudulent means and subsequently misappropriated millions of dollars of investment funds."

The FBI stated that Kim lost approximately $3.8 million of investor funds and is currently charged with securities fraud and wire fraud. According to court records, Kim has posted a $250,000 secured bond, which includes $100,000 in cash or property as collateral.

In July 2024, Galaxy accused Richard Kim, former general partner of Galaxy Interactive, a gaming-focused venture fund under Galaxy, of misappropriating at least $3.67 million of its funds to his new blockchain startup Zero Edge.

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