Crypto Casino CEO claims that he is allegedly gambling millions of investors

Federal prosecutors in New York are pursuing fraud charges against the former CEO of a crypto-powered casino, alleging the cash of a 39-year-old gambling investor.

The U.S. Department of Justice recently charged former Zero Edge CEO Richard Kim with securities and wire fraud that allegedly diverted $3.8 million worth of seed round funds to himself for personal use. Appeal It was not sealed on Wednesday.

Zero Edge closed its $4.3 million seed funding last June, and during the stretch of the month, Kim misappropriated most of the investor’s funds, with $1 million being repurposed into a personal account with encrypted casino and sports betting platform Shuffle.

Kim told an investor that he told one investor that he only had $710,000 left a week after Zero Edge seed rounds closed. Other investors are said to have been told that the losses were due to zero-edge “financial management strategies.”

Kim, a former executive at JPMorgan and Goldman Sachs, Coindesk Last year, the “old demon” took over after losing $80,000 in a phishing attack that began “a negative spiral of leveraged trading, increasing the amount of capital and hiding the truth.”

After his arrest, Kim told the FBI that he was “clearly wrong from the start,” telling him that his actions amounted to “completely unfair” betrayal for investors.

“Kim is said to have placed a bet that false assurances would induce more investments and conceal the true nature of his spending,” FBI assistant director Christopher Leia said in a statement.

Kim worked as a venture fund investor at the facility’s crypto company Galaxy Digital before departing to start Zero Edge. Galaxy had invested in his company, court documents show.

“Richard Kim left Galaxy in March 2024 and launched Zero Edge, the company that Galaxy made immaterial balance sheet investments,” a Galaxy spokesperson said. Decryption. “When we learned about the specific actions Kim took in his role at Zero Edge, we, along with other investors, reported his actions to the authorities.”

The Securities and Exchange Commission filed a request from Kim for fraud in May. I’m saying In the press release, after he received the funds, he diverted the investors’ funds into “minutes.” Regulators noted that Zero Edge was not released and the company was liquidated.