The founder of the Cryptocurrency Project gambled with customer funds and was arrested!

Galaxy Digital, Goldman Sachs and JPMorgan former executive Richard Kim was arrested on allegations of embezzlement, claiming to have lost approximately 7 million dollars, a significant portion of which was due to the embezzlement.

Richard Kim, the founder of the cryptocurrency project Zero Edge, lost approximately 7 million dollars collected on behalf of Zero Edge in gambling.

In the investigations carried out against Kim, it was determined that he used a significant part of the money he collected from investors in high-risk leveraged transactions and lost approximately 3 million 670 thousand dollars on betting sites.

It was also stated that Kim provided misleading information to investors during the fundraising, misappropriated the funds, and directed a large portion of the funds to gambling platforms.

He said about the incident, “I initially lost $80,000 in a phishing scam. I succumbed to my weaknesses to recover what I lost and struggled to maintain my reputation. However, I messed everything up.”

After the events, Galaxy spokesperson Michael Wursthorn stated that Richard Kim left the company in March 2024 and subsequently founded Zero Edge, and said, “As soon as we became aware of Kim’s actions, we informed the authorities about the situation.”