Richard Kim, a former executive at Galaxy Digital, Goldman Sachs and JPMorgan, was arrested after he allegedly lost nearly $7 million, much of it through embezzlement.
Richard Kim, founder of cryptocurrency project Zero Edge, lost nearly $7 million he had raised on behalf of Zero Edge while gambling.
In the investigations conducted about Kim, it was determined that he used a significant portion of the money he collected from investors in high-risk leveraged transactions and lost approximately $3 million 670 thousand on betting sites.
It was also reported that Kim provided misleading information to investors during fundraising, embezzled funds and directed a large portion of the funds to gambling platforms.
“I first lost $80,000 in a phishing scam. I succumbed to my weaknesses and tried to recover my losses and protect my reputation. But I messed up,” Kim said.
Making a statement following the events, Galaxy spokesman Michael Wursthorn stated that Richard Kim left the company in March 2024 and then founded Zero Edge, and said, “As soon as we became aware of Kim’s actions, we reported the situation to the competent authorities.”
*This is not investment advice.