Founder of Zero Edge Charged with Misuse of Investor Funds
According to BlockBeats, Richard Kim, the founder of the cryptocurrency platform Zero Edge, was arrested on Tuesday following allegations of misusing investor funds for gambling. The U.S. Federal Bureau of Investigation (FBI) filed an indictment in the Southern District of New York, accusing Kim of fraudulently convincing investors to fund his cryptocurrency company, Zero Edge, and then misusing millions of dollars.
The FBI reported that Kim lost approximately $3.8 million of investor funds and now faces charges of securities fraud and wire fraud. Court records indicate that Kim has posted a secured bail of $250,000, which includes $100,000 in cash or property as collateral.
In July 2024, Galaxy accused Richard Kim, the former general partner at Galaxy Interactive, an investment fund focused on gaming under Galaxy, of misusing at least $3.67 million from his new blockchain startup, Zero Edge.
