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Richard Kim, founder of the crypto casino Zero Edge, has admitted in an interview that he entered into leveraged crypto trades which could go on to suffer big losses as the price of bitcoin fell in June. This occurred shortly after receiving around $7 million in fundraising from investors.
Kim is a co-former executive of Galaxy, a cryptocurrency exchange, as well as an alumnus of trading divisions at JPMorgan and Goldman Sachs.
Kim resigned on July 2, according to an email sent by the company to investors.
Galaxy was one of the investors and they have since reported Kim to authorities.
"Mr. Kim left Galaxy in March 2024 to start Zero Edge, a company in which Galaxy had an immaterial balance-sheet investment," a spokesperson for Galaxy told CoinDesk. "Upon learning of certain actions taken by Mr. Kim in his role at Zero Edge, we, along with other investors, reported his conduct to the authorities." Galaxy's spokesperson declined to specify the size of the firm's investment in Zero Edge.
The online casino was supposed to eliminate the house edge.
Adrian Casey, another of Zero Edge's founders, said:
"While we expect our 0% house edge casino games to attract a wide range of customers, what we truly want to put in the forefront is our 0% commission sports betting which has never been seen on the market before."
Kim said he also reported himself to the U.S. Securities and Exchange Commission's public tip line.
"Part of my rationale in reaching out proactively to the SEC was to say, OK guys, I really f—d up. I lost this money. It was grossly negligent. But I didn't intend to go run away with this money," Kim told CoinDesk.
Of course, we here at Gambling911.com have a lovely bridge to sell you if you believe that but who knows?
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