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 for allegedly misappropriating investor funds for high-stakes gambling. According to the FBI indictment published by the Southern District of New York Federal Court on Tuesday, Kim "induced investors to fund his cryptocurrency technology company Zero Edge through fraudulent means, and then embezzled millions of dollars in investment funds". The FBI accused Kim of losing "almost all" of the $7 million raised and filed a lawsuit against him for securities fraud and telecommunications fraud. Court records show that Kim was released on a $250,000 bail bond and $100,000 in "cash or real estate" as collateral. Kim previously disclosed that he had lost $3.67 million of investor funds gambling from his company Zero Edge last year.
Kim was previously a financial elite who worked at Galaxy Investments under Michael Novogratz, managed elite trading teams at JPMorgan Chase and Goldman Sachs, and had also served as a practicing lawyer at the renowned law firm Cleary Gottlieb.
