Core Points - Richard Kim, a former executive at Goldman Sachs and JPMorgan Chase, has been indicted on charges of securities and wire fraud for allegedly misappropriating approximately $4 million in investor funds for his start-up online casino company, Zero Edge, most of which he reportedly lost within a week through gambling [1][3][4] Group 1: Company Overview - Zero Edge was announced by Kim after leaving Galaxy Digital in March 2024, with plans to develop a blockchain and cryptocurrency-enabled gaming app [2] - The company was incorporated in April 2024 in the Cayman Islands but never launched its casino and entered voluntary liquidation in December 2024 [5] Group 2: Financial Misconduct - Kim misappropriated about $3.8 million of investor funds shortly after closing a $4.3 million seed financing round in June 2024, transferring the funds to personal accounts for leveraged cryptocurrency trades and gambling [3][4] - In an email to investors, Kim admitted responsibility for the loss of $3.67 million, but concealed the fact that he had used the funds for personal gambling rather than a treasury management strategy [4] Group 3: Legal Proceedings - Kim was arrested on April 15, 2024, after a criminal complaint was filed by the Manhattan U.S. Attorney's office, and he was released on a $250,000 bond [5][6] - Since his arrest, judges have extended deadlines for prosecutors to either obtain a grand jury indictment or drop the charges, indicating ongoing discussions for a possible resolution [7] Group 4: Background and Investor Response - Kim reported his conduct to the Securities and Exchange Commission in July 2024, claiming gross negligence in misusing company funds but denying fraudulent intent, attributing his actions to a gambling addiction [8] - Galaxy Digital, where Kim had been a venture fund investor for six years, stated that they reported his conduct to authorities upon learning of his actions at Zero Edge [10]