Crypto Founder Squanders $3.7 Million in Seed Money

When Richard Kim founded Zero Edge, a crypto casino offering customers equal odds against the house, it seemed a safe wager given his sparkling resume. With executive stints at Galaxy Interactive and blue-chip giants like Goldman Sachs and JP Morgan, plus a law degree from a top firm, Kim looked like a sure bet. But a series of reckless crypto trades would undo his good fortune faster than a spin of the roulette wheel.

After securing $3.67 million in seed money on June 20th, Kim began aggressively trading cryptos over the next week. Like a gambler chasing his losses, he bet big – and lost even bigger. By month’s end, he had squandered nearly all the investor funds in a series of risky trades gone awry. Paralyzed by fear and desperate to save face, Kim initially downplayed the losses to partners and directors.

The verdict? The house always wins. Kim has since admitted to gross negligence in SEC filings and resigned as Zero Edge CEO effective July 2nd. In a raw mea culpa, he traced his undoing to a “foolish mistake” involving a phishing site that triggered his “demons of past addictions.” While insisting he never planned to abscond with the money, the funds are likely gone for good.

For Kim, once a rising star in the crypto space, the loss cuts deep. His reputation in tatters, his career now spins on a dime. And Zero Edge’s future looks uncertain without its founder’s vision at the helm.

As Mr. Kim stated in legal documents, “I made a careless gamble based on pride and ego that has cost me everything I worked for.” Perhaps this cautionary tale shows that in the high-stakes crypto casino, the odds are rarely in your favor. Even – or especially – if you’re a VIP player. As Mr. Kim learned the hard way, one roll of the dice can bring an empire crashing down.

While the firm has not accused Mr. Kim of intent to defraud, his gross misconduct has irreparably harmed its launch plans and creditworthiness. According to company attorneys, “legal options are under review” given the millions in investor funds still unaccounted for.

For now, Zero Edge must cut its losses and regroup without its founder at the table. But the house may yet have another card to play against the man who gambled everything on a losing hand.