Ex-Goldman exec ‘blew $4M of investor cash on – Business News
The feds have charged a former prime banker at Goldman Sachs and JPMorgan Chase with bilking buyers out of more than $4 million — then playing all of it away whereas claiming he was building a cryptocurrency startup.
Richard Kim, who had served as Goldman’s chief working officer of international overseas exchange and rising markets trading from 2015 to 2018, allegedly lured buyers with plans to develop blockchain-based on line casino video games, based on papers filed in Manhattan federal court docket.
But the previous financial honcho, who based gaming company Zero Edge Corporation and served as its chief govt within the alleged fraud, as a substitute squandered the money on personal cryptocurrency trades and online playing, based on court docket papers.
Richard Kim, former Goldman Sachs and JPMorgan govt, is accused of defrauding buyers out of more than $4 million by his cryptocurrency-based on line casino startup. Doubl3Tap Gaming Podcast
An legal professional for Kim, who led elite trading desks at JPMorgan earlier than his high-level stint at Goldman, declined to remark when reached by The Post.
The 39-year-old Kim introduced Zero Edge’s launch on LinkedIn in late March of final 12 months, telling potential backers the company would create a number of on line casino video games beginning with craps and finally together with roulette, baccarat and blackjack.
To raise cash, Kim used investor shows and pitch supplies claiming the money was for technology development. He promised oversight procedures and advised backers would have decision-making energy, together with these involving company leaders, court docket paperwork show.
That helped Kim secure roughly $4.3 million from buyers between February and July 2024, prosecutors stated.
But simply as he was wrapping up the funding spherical in late June, Kim moved about $3.8 million to his personal cryptocurrency account at Coinbase, then distributed practically $1 million throughout a number of digital currency platforms together with Binance, Kraken and Backpack.
Kim, founder and CEO of Zero Edge Corporation, faces securities and wire fraud expenses in reference to the alleged scheme. Doubl3Tap Gaming Podcast
He moved roughly $7 million whole by numerous accounts — depositing the cash in an account at Shuffle.com, which markets itself as a “VIP Crypto Casino and Sportsbook.”
Even after he began playing with investor money, Kim continued searching for further investments, based on the fees. Kim additionally despatched roughly $450,000 to cryptocurrency wallets belonging to unidentified people and moved one other $145,000 from Kraken to his personal bank account at TD Bank.
It was apparently solely a matter of days earlier than Kim had squandered the funds, with Kim admitting to buyers that the majority of their money had disappeared — though he stopped short of telling them precisely how.
Kim allegedly advised buyers their funds would develop blockchain on line casino video games like craps, roulette, and blackjack. wpadington – stock.adobe.com
Around June 29, 2024, he emailed backers acknowledging he was “solely responsible for the loss of $3.67 million of the Company’s balance sheet” after what he described as “leveraged trading losses from seed round financing proceeds.”
In one other message to buyers round July 9, 2024, Kim stated he “fully acknowledge[d] the breach of trust that…occurred” and admitted “[e]ach [investor] trusted me to build something great, and I violated it at the deepest levels, all from my closest friends.”
About a week after the funding spherical concluded, Kim additionally knowledgeable a Zero Edge investor during a telephone dialog that he had misplaced roughly $3.7 million of investor funds, based on the indictment.
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Kim advised buyers he had engaged in “day trading” with their money, inflicting tens of millions in losses till solely $710,000 remained.
Prosecutors, nevertheless, say he hid the total fact from backers as he claimed he misplaced the funds by a “treasury management strategy” as a substitute of admitting he had gambled it away at an web on line casino.
Following his arrest on April 15, Kim acknowledged to the FBI that he knew buyers “100%” would have needed details about his trading actions and that he intentionally stored this info from them.
Prosecutors say Kim diverted investor funds to personal cryptocurrency accounts and online playing websites. REUTERS
Kim advised the FBI that “at no point did [he] think [he] should be gambling investor money on Shuffle,” calling it “clearly wrong from the beginning.”
He characterised his actions as a “betrayal” of buyers and admitted his conduct was “completely unjustifiable.”
The grand jury indicted Kim on two counts: securities fraud and wire fraud.
If convicted, Kim faces a number of many years behind bars in addition to forfeiture of all property related to the alleged crimes.
The Post has sought remark from Kim.
