News 
April 17, 2025 
3 min. 
Authorities arrested Richard Kim, a former high-level Wall Street executive, on charges of wire fraud and securities fraud. They allege he misused over $4 million in investor funds linked to a crypto casino startup called ZeroEdge.
Background: From Wall Street to Web3
FBI Special Agent Thomas McGuire filed an affidavit in the Southern District of New York outlining Kim’s financial background. Kim held senior trading roles at Goldman Sachs and J.P. Morgan before launching ZeroEdge in March 2024.
He marketed ZeroEdge as a blockchain-powered casino featuring on-chain games, a native digital currency called “FAITH,” and a tradeable token “$RNG.”
$4.3 Million Raised Through Token Sales
Between March and June 2024, Kim raised around $4.3 million through seed funding and token offerings. He promoted a roadmap that promised smart contracts, provably fair casino games, and compliance with gambling and securities laws.
However, prosecutors now claim that the funds were not used as promised.
Investor Funds Reportedly Diverted
Prosecutors allege that Kim misrepresented how investor funds would be used. Instead of funding platform development, he allegedly diverted the money to speculative crypto trades and personal use.
False Promises and Misleading Documents
According to investigators, Kim reassured investors through formal agreements and token sale documents that all funds would go directly into building the platform.
At least one investor later told authorities they would not have invested if they had known the money was used as personal loans.
Questionable Legal Claims
To further build investor trust, Kim claimed the platform had passed legal scrutiny from firms like Greenberg Traurig. However, the complaint alleges that some key contracts were never finalized or were modified to remove essential obligations around financial transparency and oversight.
Charges and Ongoing Investigation
Kim now faces federal charges under Title 18 for wire fraud and securities violations. The investigation by federal authorities is still in progress.
