#BinanceLeadsQ1
According to ShibDaily, Richard Kim, a former executive at major Wall Street firms, has been accused by federal prosecutors of defrauding investors in his emerging cryptocurrency casino, Zero Edge. The government alleges that Kim solicited more than 7 million dollars under false pretenses and embezzled the funds, losing most of it through high-risk trades and gambling. Kim, who previously held positions at Galaxy Digital, Goldman Sachs, and JPMorgan Chase, was arrested on Tuesday, according to court documents.
The formal complaint, filed in the Southern District of New York, charges Kim with wire fraud and securities fraud, allegedly occurring between March and July 2024. The affidavit of an FBI agent claims that Kim devised a scheme to defraud investors. It is reported that Zero Edge raised over 7 million dollars, closing a seed round around June 20, after which the alleged embezzlement began. The FBI stated that Kim lost almost all the funds, with initial reports indicating he admitted to losing at least 3.67 million dollars shortly after the funding closed, while prosecutors later cited a figure closer to 4.3 million dollars.
Kim attributed the losses to leveraged cryptocurrency trades during the Bitcoin crash in June, citing a long-standing gambling addiction and a downward spiral. He expressed remorse, stating that after receiving the funds, he felt compelled to make up for his mistakes. Kim's arrest sharply contrasts with his pedigree on Wall Street and in law, having served as a general partner at Galaxy Interactive and held COO roles in trading divisions at Goldman Sachs and JPMorgan, as well as working as a lawyer at Cleary Gottlieb.
Galaxy Digital, an investor in Zero Edge, reported Kim's conduct to the authorities upon learning of his actions, deeming its own investment immaterial.
