PANews reported on April 18 that according to CoinDesk, Richard Kim, the founder of the crypto project Zero Edge, was arrested by the police on Tuesday on suspicion of misappropriating investor funds for gambling. According to the FBI indictment released by the Federal Court for the Southern District of New York on Tuesday, Kim "used fraudulent means to induce investors to invest in Zero Edge, a cryptocurrency technology company he founded, and then embezzled millions of dollars in investment funds." The FBI accused Kim of "almost losing all" the $7 million raised and filed a lawsuit against him for securities fraud and wire fraud. Court records show that Kim was released on a $250,000 secured bond and $100,000 in "cash or real estate" as collateral. Kim disclosed last year that he lost $3.67 million in investor funds from his company Zero Edge in gambling.
Kim is a financial elite who has worked for Galaxy Investment Company under Michael Novogratz and managed elite trading teams at JPMorgan Chase and Goldman Sachs. He also previously worked as a practicing attorney at the well-known law firm Cleary Gottlieb.
