The founder of the non-existent Zero Edge Cryptocasino Richard Kim was detained by the New York police for fraud and deception of crypto-investors. He was later released on bail of $ 250,000.

According to the complaint of the Federal Bureau of Investigations (FBI), filed in the Court of the Southern District of New York, Kim deceived investors to invest in Zero Edge. Kim promised that the company would develop a number of blockchain -based games that will become a “social casino”, where players will be able to win virtual currencies and real money.

Kim said that he will be the “chief architect” of the company, taking advantage of his reputation. The man built a brilliant career in large banks JP Morgan and Goldman Sachs. Prior to that, he worked as a lawyer in a prestigious law firm Cleary Gottlieb. In March 2024, he left the leading post in the company Galaxy Digital to establish Zero Edge. During the initial round of financing, Kim managed to raise more than $ 7 million, but cryptocasino did not open.

The founder of Zero EDGE explained that he lost $ 80,000 due to phishing and suffered losses of $ 3.8 million due to high-risk cryptocurrency transactions using borrowed funds. This happened within a week after collecting funds. For several months, the entrepreneur misled the investors, but in June last year he confessed to the loss of funds and negligence, clarifying that he was not going to escape with client funds. It turned out that part of Kim transferred some funds to the gambling website Shuffle.com.

There are times when casinos themselves can suffer from attackers. Last year, the hacker robbed Duelbits cryptocasino, compromising a closed key. The amount of damage amounted to $ 4.6 million.