The founder of the crypto project has gambled with investors' money!

Former Galaxy, Goldman Sachs and JPMorgan executive Richard Kim was arrested for allegedly losing nearly all of the approximately $7 million investment fund he raised for his Zero Edge project by gambling.

Kim will be tried on the charge of “deceptively convincing investors to invest in Zero Edge and then misappropriating those funds.” It is known that a significant portion of the investors’ money was spent on high-risk, leveraged transactions and that approximately $3.67 million was lost in gambling last year.

The founder stated, “It all started with an $80,000 phishing site. This triggered my old vulnerabilities and created the need to ‘get back what I lost.’” indicating that the process began with a careless mistake.

It was also emphasized that Kim misled investors about the flow of money and did not report that a portion of the funds was transferred to a betting site.

Galaxy spokesperson Michael Wursthorn stated, “Who left Galaxy in March 2024 to establish Zero Edge. When we learned what they did, we reported the situation to the authorities along with other investors.”

Published: April 19, 2025 13:59