Richard Kim, the founder of crypto gambling platform Zero Edge and a former executive at Galaxy Digital, has been arrested on charges of securities and wire fraud after allegedly misusing $7 million in investor capital.
Here’s What Happened:
🔹 High-Profile Arrest:
Kim was taken into custody after authorities discovered he had allegedly lost nearly the entire investment pool—funds he claimed would be used to build Zero Edge—on personal expenses and high-stakes gambling.
🔹 Fund Misuse:
Instead of safeguarding investor capital, Kim is accused of funneling the funds into private crypto wallets and gambling platforms, violating promises made to backers about asset security and project development.
🔹 Investor Reactions:
Major investors, including Galaxy Digital, flagged Kim’s suspicious activity, triggering the investigation and leading to rapid legal action.
Kim now faces serious federal charges as prosecutors work to uncover the full extent of the alleged fraud.
