# Crypto Casino Founder Arrested After Gambling Investor Funds

*Author: Bankless*
*Published: Apr 17, 2025*
*Source: https://www.bankless.com/fr/read/crypto-casino-founder-arrested-after-gambling-investor-funds*

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Richard Kim, founder of crypto casino Zero Edge, was arrested for fraud after misappropriating $7M of investor funds for gambling and personal use.

## **What’s the Scoop?**
- **High-Profile Arrest**: Richard Kim, founder of Zero Edge, was arrested on securities and wire fraud charges after losing nearly all of $7 million raised.
- **Misappropriated Funds**: Kim diverted investor funds into personal crypto accounts and gambling platforms, contradicting his claims of safeguarding investments.
- **Investor Fallout**: Major backers, including Galaxy Digital, reported Kim's behavior to authorities, resulting in swift legal action.
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