Richard Kim, the founder of the cryptocurrency platform Zero Edge, was arrested on Tuesday following allegations of misusing investor funds to gamble. The U.S. Federal Bureau of Investigation (FBI) filed an indictment in the Southern District of New York, accusing Kim of fraudulently persuading investors to fund his crypto company and subsequently misappropriating millions of dollars. The FBI reports that Kim lost approximately $3.8 million of investor money and now faces charges of securities fraud and wire fraud. He has posted a secured bail of $250,000, including $100,000 in cash or real estate as collateral. In July 2024, Galaxy accused Richard Kim, a former general partner at Galaxy Interactive, a gaming-focused venture fund under Galaxy, of misappropriating at least $3.67 million from his new blockchain startup, Zero Edge.