Richard Kim, founder of crypto casino Zero Edge and a former executive at Galaxy, Goldman Sachs, and JP Morgan, was arrested on charges of securities and wire fraud for allegedly misappropriating and gambling away $3.8 million of investors' funds. The FBI reported that Kim lost nearly $7 million in total, partly due to a phishing scam he initially used as a cover for his gambling activities. In a previous interview, he admitted to losing this money through high-risk leveraged crypto trades and described his actions as motivated by a desire to recover his losses and preserve his reputation. Kim reportedly misled investors about the handling of their funds, transferring some to online gambling sites. Following significant losses, he attempted to self-report to the SEC. This incident has alarmed the cryptocurrency community as Zero Edge, which pitched itself as a unique crypto casino, has never launched, leaving investors like Galaxy with unmet financial expectations.

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