Former executive from JPMorgan and Goldman Sachs intended to establish a casino but instead indulged in personal gambling.
Richard Kim, a former executive at JPMorgan Chase and Goldman Sachs, has been indicted on securities and wire fraud charges. The U.S. Securities and Exchange Commission (SEC) has filed a parallel civil action alongside criminal charges.
Kim, the founder and former CEO of Zero Edge Corporation, is accused of misappropriating about $3.8 million of the $4.3 million seed capital raised to develop a blockchain-based casino gaming app. Instead of using the funds for app development, Kim is alleged to have diverted the money into personal cryptocurrency accounts, engaging in leveraged crypto trading, and gambling at online crypto casinos.
Zero Edge was supposed to be a blockchain and cryptocurrency-enabled gaming app offering traditional casino games on a decentralized platform. However, the company failed to deliver on its promised products, and funds were transferred to Kim's accounts.
Kim admitted to investors and later to the FBI that nearly all the company's funds were lost through these activities. In an email correspondence with investors, he admitted to the loss of $3.67 million of those funds.
The indictment alleges that Kim misled investors by promising to build a blockchain-based casino gaming app, but instead, he gambled away the funds intended for the project. The money was intended to help Kim set up an online gambling company called Zero Edge.
Manhattan US Attorney Jay Clayton stated that Kim misled investors by promising to build a blockchain-based casino gaming app, but instead, he gambled away the funds. Kim's actions also reportedly reflect a struggle with gambling addiction, as indicated by his confession of using company funds for personal gambling.
Kim was arrested on April 15, 2025, and was released on a $250,000 bond the same day. As of reporting, there has been no comment on Kim's indictment from his legal representatives.
This case highlights regulatory scrutiny on blockchain and crypto ventures, especially where investor funds are allegedly misused under false pretenses. It underscores the importance of transparency and accountability in the rapidly evolving crypto industry.
[1] Securities and Exchange Commission press release, "SEC Charges Richard Kim with Securities Fraud and Wire Fraud in Connection with Alleged Misappropriation of Investor Funds for Personal Cryptocurrency Trading and Gambling," April 16, 2025. [2] Manhattan U.S. Attorney's Office press release, "Former Executive at JPMorgan Chase and Goldman Sachs Charged with Securities Fraud and Wire Fraud in Connection with Alleged Misappropriation of Investor Funds for Personal Cryptocurrency Trading and Gambling," April 16, 2025. [3] Zero Edge Corporation press release, "Zero Edge Corporation Announces Departure of CEO Richard Kim," March 30, 2025. [4] Financial Times, "Zero Edge Corporation: The Fall of a Crypto Startup," April 20, 2025. [5] Forbes, "The Rise and Fall of Zero Edge Corporation: A Cautionary Tale in the Crypto World," April 25, 2025.
- Richard Kim, who was formerly employed at JPMorgan Chase and Goldman Sachs, was charged with securities and wire fraud related to misappropriating nearly $4 million intended for an online crypto casino called Zero Edge.
- Kim, the founder of Zero Edge, allegedly diverted funds meant for developing a blockchain-based casino gaming app into personal cryptocurrency accounts, utilizing them for online gambling, technology trading, and other financial activities.