Zero Edge Founder Arrested for Alleged Misuse of Investor Funds

According to BlockBeats, Richard Kim, the founder of the cryptocurrency platform Zero Edge, was arrested on Tuesday following allegations of misusing investor funds for gambling. The U.S. Federal Bureau of Investigation (FBI) filed an indictment in the Southern District of New York, accusing Kim of fraudulently inducing investors to fund his crypto company, Zero Edge, and subsequently misappropriating millions of dollars. The FBI reported that Kim lost approximately $3.8 million of investor money and now faces charges of securities fraud and wire fraud. Court records indicate that Kim has posted a secured bail of $250,000, which includes $100,000 in cash or real estate as collateral. In July 2024, Galaxy accused Richard Kim, a former general partner of Galaxy Interactive, a gaming-focused venture fund under Galaxy, of misappropriating at least $3.67 million from his new blockchain startup, Zero Edge.