Founder of Crypto Casino Zero Edge Richard Kim Arrested in the U.S. — Investors Lost Nearly $7 Million

Former executive at Galaxy, Goldman Sachs, and JP Morgan, and founder of the crypto casino Zero Edge, raised over $7 million from investors, promising to create a blockchain-based social casino with virtual currencies and real winnings. However, according to investigators, almost all the funds were lost.

Charges and Case Summary

According to an FBI complaint filed in the U.S. District Court for the Southern District of New York, Richard Kim “fraudulently convinced investors to fund Zero Edge” and then misappropriated millions of dollars. He faces charges of securities fraud and wire fraud.

Investigators claim that Kim lost nearly all the raised funds — about $7 million — through risky crypto transactions and transfers to gambling platforms.

How Kim Lost Investors’ Money

The downfall began with a phishing attack that cost Kim $80,000. He then turned to leveraged trading in an attempt to “recover” the losses, concealing them while continuing to attract new investments.

By his own admission, Kim lost $3.67 million in high-risk crypto operations and also transferred part of the funds to the gambling site Shuffle.com. He stated that his actions were “grossly negligent” but not intended to embezzle the money.

Arrest and Bail

After being detained, Kim was released on bail set at $250,000, including $100,000 in cash or property. If convicted, he faces up to 20 years in prison for each count.

Position of Investors and Former Colleagues

Galaxy, where Kim previously worked, along with other investors, reported the violations to authorities immediately upon discovering them.

According to a Galaxy spokesperson, the company had “minor involvement” with Zero Edge but contacted law enforcement as soon as they learned of Kim’s actions.

Zero Edge: A Failed Project

Zero Edge was never launched. The idea was to create a transparent crypto casino where players could expect fair play.

In an interview with CoinDesk, Kim claimed his goal was to “remove the house edge” and promote fairness in gambling — partly due to his own past addiction to it.

Key Facts