Richard Kim, founder of Zero Edge crypto casino, is facing serious heat in a New York federal court, charged with securities and wire fraud. He allegedly squandered nearly $7 million of investor money—poof, gone in reckless trades and a jaw-dropping $1 million gambling binge on Shuffle.com. Investors? Left with nothing, zip, just fury. Losses hidden, shady deals—man, what a mess. Kim’s out on a $250,000 bond. Curious? There’s plenty more to uncover.
Buckle up, folks—another crypto dream just crashed and burned. Richard Kim, the big-shot founder of the never-launched crypto casino Zero Edge, is now staring down some ugly charges in a New York federal court. Securities fraud. Wire fraud. Yeah, it’s that bad. This guy, once a hotshot exec at Galaxy Digital, Goldman Sachs, and JPMorgan Chase, allegedly blew nearly $7 million of investor cash. Not on building his promised casino, nope. On high-risk crypto trades and, get this, gambling on other sites like Shuffle.com. Talk about irony.
The details? They’re a mess. Kim raised over $7 million in seed funding, name-dropping fancy connections like Galaxy to reel in the dough. Then, poof—$3.8 million gone in a single week through reckless trades. He even admitted to losing $3.67 million on high-leverage bets. And $1 million? Straight to Shuffle.com for some online gambling fun.
Kim raised $7 million, then blew $3.8 million in a week on wild trades and $1 million gambling on Shuffle.com. What a disaster!
Meanwhile, investors got nada. Just lies. For months, Kim allegedly spun tales, hiding the losses, tweaking agreements to dodge transparency. False pretenses? Check. Diverted funds? Double check. It’s a textbook scam, if textbooks covered crypto disasters. His past high-profile roles at major financial firms only deepened the investors’ trust.
Now, Kim’s got excuses. Claims an $80,000 phishing scam loss triggered a gambling addiction relapse. Sure, buddy. He self-reported to the SEC, whining it was “gross negligence,” not fraud. Even boasted about legal reviews from firms like Greenberg Traurig to calm investors. Didn’t help. Additionally, his prior departure from Galaxy in March 2024 before founding Zero Edge raises questions about his motives from the start.
The FBI nabbed him, and now he’s out on a $250,000 bond, coughing up $100,000 in collateral. Southern District of New York is handling the case, and folks are watching. Investors, including Galaxy Digital, are fuming, filing complaints that pushed this to federal charges. Crypto enforcement in the US? This could be a big data point.
