Zero Edge Crypto Casino Founder Richard Kim Accused of Fraud
The history of cryptocurrencies and online casinos has been replenished with a new high-profile scandal. The focus was on former banker and lawyer Richard Kim, who, according to the FBI, deceived investors of more than $7 million under the pretext of creating a Zero Edge blockchain casino. Instead of a revolutionary project, the money was poured into high-risk crypto deals, phishing attacks and... other gambling sites.
Who is Richard Kim?
Before his fall, Kim was a highly respected figure in the financial world. He has worked for giants such as JP Morgan, Goldman Sachs, and the law firm Cleary Gottlieb. And in 2024, he left his post at Galaxy Digital to, as he claimed, "turn the online gambling industry upside down" with the help of blockchain.
Zero Edge was conceived as a "social casino" where players could win not only virtual money, but also real money. Investors liked the idea — during the initial round of funding, the project raised more than $7 million.
What went wrong?
According to the investigation, a week after receiving the funds, Kim:
- lost $80,000 due to a phishing attack;
- drained $3.8 million on margin transactions with crypto;
- hid it from investors for several months;
- transferred part of the collected money to the GlitchSpin platform
Kim admitted that he committed "negligence", but denies malicious intent. He claims that he was not going to hide with the money and intended to return everything.
Consequences
The FBI has filed a formal lawsuit in the Southern District of New York. Richard Kim is charged with investment fraud and improper use of funds. Zero Edge Casino never worked.
This case is a vivid reminder of how risky investments in projects at the intersection of crypto and gambling are. Even well-known names and a brilliant resume do not guarantee honesty.
When not only investors suffer
By the way, even crypto casinos themselves sometimes become victims. In 2024, the Duelbits site was robbed of $4.6 million after attackers compromised its private key. Attacks on the crypto industry continue to grow, and the lines between criminals and "entrepreneurs" are increasingly blurring.