Richard Kim, a Korean American attorney and former executive at Goldman Sachs and JPMorgan, has been arrested by the Federal Bureau of Investigation (FBI) on charges of wire fraud and misappropriation of funds. Kim is accused of embezzling approximately $7 million in investor funds from his cryptocurrency casino startup, Zero Edge, and using the money for gambling.
Korean American Executive’s Career Before the Fraud Case
Before founding Zero Edge, Kim worked as Chief Operating Officer (COO) of foreign exchange trading divisions at Goldman Sachs and JPMorgan, and previously served as an attorney at the law firm Cleary Gottlieb.
According to an affidavit submitted by FBI Agent Thomas McGuire to the U.S. District Court for the Southern District of New York on April 13, 2025, Kim allegedly transferred operating funds from Zero Edge to other gambling sites between March and July 2024, without notifying investors.
Victims Included His Former Employer
Among the victims of the alleged fraud was Galaxy, a cryptocurrency investment firm where Kim previously served as an executive. Michael Wursthorn, Galaxy’s communications lead, said the company had invested in Zero Edge after Kim’s resignation in early 2024.
“After identifying the embezzlement, we reported Richard Kim to the Securities and Exchange Commission (SEC) in coordination with other investors,” Wursthorn said.
CoinDesk Reports Prior Phishing Scam
On April 17, 2025, crypto news outlet CoinDesk reported that Kim had previously lost $80,000 to a phishing website. According to the report, Kim issued a public apology and later pursued high-risk leveraged crypto investments, allegedly in an attempt to recover losses and protect his reputation.
CoinDesk noted that these decisions ultimately led Kim to gamble extensively, a pattern that preceded the FBI’s fraud charges. The FBI has not publicly confirmed any motive behind the alleged fraud.
Kim was arrested on April 15, 2025, and remains in federal custody as the investigation continues.
BY YEOL JANG [jang.yeol@koreadaily.com]
