Richard Kim has been arrested and charged with wire fraud and securities fraud for allegedly misappropriating over $4 million from investors in a blockchain-based online casino startup called ZeroEdge.

Wall Street executive Richard Kim arrested and charged with misappropriating over $4M from ZeroEdge blockchain casino investors

Former Wall Street executive Richard Kim has been arrested and charged with41538746implied intent to defraud investors in a blockchain-based online casino startup called ZeroEdge.

The startup, which was founded in early 2024, aimed to create a crypto-powered casino with on-chain games, a virtual currency called “FAITH,” and a tradeable token named “$RNG.”

According to a complaint filed by the U.S. Attorney for the Southern District of New York, Kim allegedly misappropriated over $4 million from investors in a seed financing round and token sales.

The complaint, which was prepared by Assistant U.S. Attorney Katherine M. Haun, details how Kim allegedly deceived investors regarding the use of their funds.

Kim's employment at Goldman Sachs and J.P. Morgan in global foreign exchange and emerging markets trading was mentioned in press releases to attract investors, while investors' conversations with Kim and token sale documents stated that the funds were for platform development.

However, at least one investor told the FBI they would not have invested if they had known the funds were effectively personal loans to Kim.

The complaint also mentions that while Kim cited legal reviews from firms like Greenberg Traurig to investors, some key agreements were never fully executed or were altered to remove obligations around financial transparency and internal controls.

Kim is charged with one count of wire fraud in violation of Title 18, Section 1343, and four counts of securities fraud in violation of federal securities laws. The case remains under investigation by the FBI.