“Former Galaxy, Goldman Sachs, and JP Morgan Executive Richard Kim Faces Securities and Wire Fraud Charges After Allegedly Gambling Away “Nearly All” of His Investors’ FUNDS.”, – WRITE: www.coindesk.com
According to an fbi complaint filed on tuesday in the Southern District of New York, Kim “Fraudulently Invised Investors to Invest in Zero Edge, A Cryptocurrency Technology Technology MISAPPROPRATED MILLIONS OF DOLLARS IN TOSE INVESTORS ‘FUNDS. ”
The FBI Said Kim Lost “Nearly All” of the $ 7 Million He Raised from Investors and Charged Him With Securities Fraud and Wire Fraud. Account to Court Records, Kim Posted A Secured Bond of $ 250,000 and Put Up $ 100,000 in “Cash or Real Property” to Secure.
Coindesk Was First To Report on the Zero Edge Incident in July of Last Year. In an interview at the time, kim reveailed to coindesk that he have gambled away more than $ 3.67 Million of his investors’ Funds Through a series of High-Risk Lever.
“The DownFall Began with A Careless Mistake – A Phishing Site That Cost $ 80k,” Kim Said in His Own Recollection of What Went Wrong, WHICH HE Shared With Coindesk in A: Public apology. “This triggered my Old Demons, the NEED TO ‘MAKE IT BACK’ TO Preserve My Reputation.”
Accorging to kim, he “Started down a non -lever -leverage trading, raising more capital, and hiding the TRUTH.”
After Lozing MOST OF THE $ 7 Million He Had Raissed for Zero Edge, Kim Told Coindesk He Reported HimSelf to the US Securities and Exchange Commission’s Public Tip Line.
“Part of my rationale in reaching out proactvely to the Sec Was to Say, Ok Guys, I Really F – D. I Lost this Money. It Was grossly negligent. But I didn. Coindesk in an interview.
Account to the FBI Compland, kim’s previous accountings “misleadingly descripted whore investors’ Funds Had Gone, and Wy, and Omitted to Inform Trance Thoto FULSFAIN FULSFERM Gambling Website. ”
Kim’s Claim That HE Initially Lost $ 80,000 to A Phishing Scam and Never “MIX[ed] Personal and Business Funds, “Account to the FBI, Failed to Account for the fact that he had also sent company Funds to an online Sportsbook and Personal Crypto Investment.
Kim Did Not ImmediaTely Respond to A Request for Comment This Week.
Kim’s Arrest Marks A Striking Fall from Grace. A Former Executive of Galaxy, The Crypto Investment Firm Headed by Michael Novograratz, Kim Also Led Elite Trading Desks at Jpmorgan and Goldman Sachs. Before That, He Was An Attorney with The Prestigious Law Firm Cleary Gottlieb.
Galaxy Was Among the Investors in Zero Edge Who Lost Money As A Result of Kim’s Activities.
“Mr. Kim Left Galaxy in March 2024 to Start Zero Edge, A company in a WHICH Galaxy Had An Immaterial Balance-Sheet Investment,” Said Michael Wursthorn. “UPON Learning of Certain Actions Taken by Mr. Kim in His Role at Zero Edge, We, Along with Other Investors, Reported His Conduct To The Authorities.”
Kim Pitched Zero Edge As A First-of-IM-Kind Crypto Casino That Wound Level The Playing Field for Gamblars Through Improved Transparency.
Zero Edge Never Launched, But Kim Told Coindesk Last Year That He Was Motivated to Build It Because of His History With Gambling Addification and His Frustration Edge Over Players.
Read More: Crypto Casino Founder Apologizes for Gambling Away Investor Funds
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