Federal prosecutors in New York have indicted former Zero Edge CEO, Richard Kim (39 years old), for allegedly embezzling $3.8 million of seed funding to gamble and for personal expenses. Zero Edge raised $4.3 million in June 2024, but within just 7 days, Kim is alleged to have used most of the funds, including $1 million transferred to an account at Shuffle – a casino and cryptocurrency betting platform.
Kim told investors that the company only has 710,000 USD left, citing reasons of “day trading” or “cash management,” while the SEC accused him of using the funds “just a few minutes” after receiving the capital. Zero Edge has never launched and is in the process of liquidation.
Kim, who previously worked at JPMorgan, Goldman Sachs, and Galaxy Digital, admitted to the FBI that his actions were “an unjustifiable betrayal” of investors.
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