14.08.2025 02:44
Former Zero Edge CEO Richard Kim faces serious criminal charges following the unsealing of an indictment in New York. The 39-year-old is accused of defrauding investors by misappropriating millions in seed funding. Specifically, the U.S. Department of Justice alleges Kim diverted approximately $3.8 million, a substantial portion of the $4.3 million raised in a seed round last June.
Prosecutors claim that within a mere week of closing the funding round, Kim illicitly transferred a significant portion of the investor funds—including $1 million to his personal account on Shuffle, a cryptocurrency casino and sports betting platform. He allegedly misled investors with fabricated explanations for the missing money, claiming losses resulted from “day trading” or a sophisticated “treasury management strategy.” These deceptive tactics, according to the indictment, were designed to mask his personal gambling habits and secure further investments.
Adding to the severity of the accusations, Kim, a former executive at prestigious financial institutions JPMorgan Chase and Goldman Sachs, confessed his actions to the FBI. He reportedly admitted to acting wrongly from the outset, acknowledging his behavior as an inexcusable betrayal of investor trust. FBI Assistant Director Christopher Raia underscored the gravity of the situation, stating that Kim gambled on false assurances to attract further investments and cover his tracks.
Kim's history adds another layer to this case. Before founding Zero Edge, he worked at Galaxy Digital, a prominent institutional cryptocurrency firm, as a venture fund investor. His previous experience in the financial industry only exacerbates the alleged breach of trust and the sophistication of his purported scheme. His own prior admission of being caught in a "negative spiral" of leveraging trading after a phishing attack that cost him $80,000 offers some insight into his alleged actions, highlighting the consequences of unchecked risk-taking. The details of this case, drawn from internet sources, paint a stark picture of financial wrongdoing within the cryptocurrency industry.
