Prosecutors say the previous Goldman Sachs and JPMorgan executives are allegedly playing buyers’ funds. Former Goldman Sachs and JP Morgan Chase govt Richard Kim has been charged with securities and wire fraud claims associated to alleged misappropriation of roughly $4 million in investor funds at a startup on-line on line casino firm. Kim just lately joined the Crypto Service provider Financial institution Galaxy Digital as the brand new COO. However he left it to search out Zero Edge. Galaxy invested.
“Like uncertain, Richard Kim misunderstood buyers by committing to constructing a blockchain-based on line casino gaming app, however sarcastically, Kim appeared again and gambled on the very funds he stated he would use to construct a greater on line casino,” stated U.S. lawyer Jay Clayton. “The founders who abuse investor belief are threatening the integrity of our vital and distinctive American enterprise capital market.”
Richard Kim’s Zero Edge analysis particulars
The case for Kim is said to Zero Edge, which is claimed to be planning to develop blockchain and cryptocurrency-enabled gaming apps. “After buying investor funds, Kim misused them by transferring them to a private account, the place he harnessed cryptocurrency transactions and wager just about every little thing in regards to the firm’s cash.” Richard Kim reportedly distracted roughly $3.8 million in investor funds shortly after closing the $4.3 million seed mortgage spherical in June 2024, in keeping with the fees.
The indictment states that former Goldman Sachs and JP Morgan executives “conceal the corporate’s misuse of funds and used them at on-line casinos, telling buyers that they misplaced their cash due to “monetary administration methods” somewhat than private playing.” Kim was arrested within the lawsuit on April 15 after the Manhattan U.S. Legal professional’s Workplace filed felony fees with that court docket earlier than being launched on bonds.
A Galaxy spokesman stated: “Richard Kim left Galaxy in March 2024 and launched Zero Edge, the corporate that Galaxy made immaterial stability sheet investments.
