Zero Edge Founder Accused of Embezzling Funds for Futures Trades

IconCryptoNewsTerminal Staff15 Jul, 2024

cryptonews.jpg

Zero Edge Founder Accused of Embezzling Funds for Futures Trades

Zero Edge, a cryptocurrency casino platform, has been hit by embezzlement allegations against its founder, Richard Kim. According to sources, Kim used company funds for futures trades, resulting in significant losses. Investors have raised concerns over the alleged embezzlement, claiming that Kim gambled away a large portion of the company's funds. The accusations stem from an incident in June, where Zero Edge received seed funding, but $80,000 was lost to a phishing scam. In an attempt to recover the lost funds, Kim reportedly engaged in leveraged cryptocurrency trading, leading to further losses. Sources indicate that most of the funds were invested in leveraged long positions, which were liquidated at a significant loss during the recent Bitcoin price crash. Prior to establishing Zero Edge, Kim was a partner at crypto venture capital firm Galaxy Interactive and held positions at Goldman Sachs and J.P. Morgan. The allegations against him have raised concerns about the integrity and financial management practices within the cryptocurrency industry.

Related News