Richard Kim, a former Goldman Sachs and JPMorgan executive, was indicted on securities and wire fraud charges, according to CNBC. Prosecutors allege he misappropriated about $4 million in investor funds for his start-up online casino company, Zero Edge, according to the Manhattan U.S. Attorney’s office. The 39-year-old New York resident announced the venture after leaving Galaxy Digital in March 2024, claiming it would develop a blockchain- and cryptocurrency-enabled gaming app. An indictment says Kim transferred investor funds to personal accounts, used them for leveraged cryptocurrency trades, and gambled away nearly all of the company’s money. Prosecutors said Kim diverted $3.8 million of a $4.3 million seed round in June 2024 to personal accounts, using the money for leveraged cryptocurrency trades and gambling on a crypto casino site. Arrested in April, Kim was released on $250,000 bond. He later told the SEC he had a gambling addiction and no fraudulent intent.
