Crypto Casino Founder Richard Kim Arrested for Allegedly Misappropriating Funds

Richard Kim, founder of crypto casino Zero Edge, was arrested for allegedly gambling away investors' funds. An FBI complaint states that he fraudulently induced investments and misappropriated millions.

Kim lost nearly all of the $7 million raised, primarily through high-risk leveraged trades.
He has been charged with securities fraud and wire fraud, posting a secured bond of $250,000.
Kim's losses began with an $80,000 phishing scam, leading to a series of poor trading decisions.
He admitted to hiding the truth from investors and subsequently reported himself to the SEC.
Galaxy, a previous employer and investor in Zero Edge, also suffered losses due to Kim's actions.
Zero Edge never launched, aimed at providing transparency in gambling.

Kim previously held roles at Galaxy, JPMorgan, and Goldman Sachs, and was an attorney at Cleary Gottlieb.