Richard Kim, founder of cryptocurrency project Zero Edge, has been arrested following accusations that he lost nearly $7 million in customer funds through gambling. Investigations revealed that Mr. Kim used a significant portion of the money raised from investors for high-risk leveraged transactions on betting sites, resulting in substantial losses of approximately $3 million. Additionally, evidence suggests that Mr. Kim misrepresented fundraising information to potential investors and embezzled funds directed towards personal gambling platforms. In a statement, Mr. Kim admitted his actions, stating: “I first lost $80,000 in a phishing scam. I succumbed to my weaknesses and tried to recover my losses and protect my reputation. But I messed up.” Mr. Kim’s former employer, Galaxy Digital, confirmed his departure in March 2024 following his involvement with Zero Edge. Galaxy stated that they reported the situation to authorities as soon as they became aware of Mr. Kim’s actions. This is not investment advice.