Founder of Crypto Casino accused of having played millions of investors
An indictment was not sealed in a case involving a founder of Crypto Casino and his alleged play of millions of investor funds. The news comes from the United States Prosecutor’s Office for the South New York District Jay Clayton.
Clayton works alongside the deputy director in charge of the New York field office of the Federal Bureau of Investigation (FBI), Christopher G. Raia.
They brought charges to the door of the former founder and chief executive officer of Zero Edge Corporation (Zero Edge), Richard Kim. The American district judge Lorna G. Schofield will supervise the procedure and results of the case.
Kim charged in a case of Crypto Casino game
Kim is accused of brain of a process to defraud the investors of Zero Edge by the authorities and the Securities and Exchange Commission (SEC) within the framework of the Securities and Exchange Commission C. Richard T. Kim, n ° 1: 25-CV-03796 (SDNY filed on May 7, 2025).
These costs include “making false and misleading statements concerning the use of investor funds and then embezzlement of these funds”, according to the MJ report.
These serious accusations of fraud in securities and one leader of fraud each bear a maximum sentence of 20 years in prison. The assistant prosecutor of the United States Ryan T. Nees will continue the case and the deposit of the case will be processed by the working group on securities fraud of securities and raw materials.
Kim allegedly alike
Zero Edge was founded by Kim in 2004 to use the blockchain and cryptocurrencies to supply a casino application. It is reported that Kim has provided potential investors that the application would be developed with their investment.
DOJ information and subsequent charges indicate that Kim did otherwise with the product of its financing rounds. Instead of developing “chain” games such as craps and potentially Bacarat, Blackjack and Roulette at a later stage, it is accused of having managed these investments.
The accusation act documents point to Kim, saying that he “diverted the product from the company’s seed tower to make speculative cryptocurrency professions and play in an online casino.”
Zero Edge financing rounds
The DoJ said that Kim and Zero Edge have closed about $ 4.3 million in investor seed funding.
In addition, Kim would have “diverted around $ 3.8 million from investors funds first in a personal cryptocurrency account held in Coinbase, then sent around $ 1 million to a variety of other crypto scholarships, including Binance, Kraken and Backpack.”
The accusation act goes further in the alleged acts of Kim from June 21, 2024 to June 27, 2024. Within this period, Kim has made transfers of $ 7 million and net transfers of $ 1 million, “Coinbase and Kraken to a personal account held on a casino and sport, Shuffle” website.
The files presented by the DOJ show that KIM transferred approximately $ 450,000 to other cryptocurrency portfolios with unknown owners and transferred an additional $ 145,000 from Kraken to a personal current account.
E-mails show the admission of guilt
In the emails presented within the framework of the indictment, Kim contacted the investors, saying that he was “solely responsible for the loss of $ 3.67 million in the company’s balance sheet”.
Despite this admission of guilt, he would have hidden the reason for losses, claiming that it was not losses of play, it was one of the “commercial losses with leverage of the product finance product” and was a “treasury management strategy”.
The FBI reported that at the time of his arrest, he said that these actions were “clearly wrong from the start” and “completely unjustifiable”.
Featured image: Ideogram.
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