Ex-JPMorgan banker charged with diverting $4M in investor funds for gambling

Richard Kim, who was formerly a major banker at JPMorgan Chase and Goldman Sachs, was charged with securities fraud and fraud on wires by allegedly transferring nearly $ 4 million of investor money from starting the casino to finance personal gambling and cryptocurrencies.

Kim, a 39 -year -old New York resident, founded Cryptocurrency Gaming Startup Zero Edge in March 2024, and worked as an executive president, claiming that investors have been told that their money will be used to build an applicable casino and its technology, according to the indictment this week.

However, in June of that year, shortly after the closing of the seed financing round of $ 4.3 million, Kim had allegedly transferred about $ 3.8 million into personal encryption accounts and then sent money to many stock exchanges and an online casino, according to accusation.

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“As he claimed, Richard Kim misled the investors by promising that he would build the application of Blockchain casino games, but it is irony that Kim turned away and moved away from the money he said he would use to build a better casino,” American lawyer Jay Clayton said in a statement.

“Founders who misuse the confidence of their investors threaten the integrity of our important and unique market from investment capital.”

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An explanatory drawing of the images of gambling online. (Istock / Istock)

He claims that he transferred about 7 million dollars through various accounts, including personal encryption portfolios, and continued to search for additional investments even after he began trading in the money of the current investors, adding the indictment.

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On just a few days, he claimed that he lost investor money, and admitted in an email to investors that he was “only responsible for losing $ 3.67 million in the company’s public budget,” according to the indictment.

Bitcoin, Ethereum and Dogecoin Cryptocurrency (Reuters/Dado Ruvic/Reuters Photo File)

After his arrest, Kim told the FBI that he had hidden information from investors, adding that he knew that his actions were “clearly wrong from the beginning” and “completely unjustified.”

Kim was accused of securitating securities and fraud on wires, as every charge over 20 years is punished in prison.

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The US Prosecutor’s Office for the southern region of New York did not respond to Four Fox Pennsylvs for comment.