Former Goldman Sachs Executive Arrested for $4.3M Crypto Casino Fraud
Date: 2025-04-18 Author: Oliver Abernathy Categories: BUSINESS
Richard Kim, formerly the COO of Goldman Sachs' foreign exchange trading unit, has found himself at the center of a high-profile criminal case. He is accused of participating in a fraudulent scheme related to the launch of an online cryptocurrency casino called ZeroEdge.
The project was launched in the spring of 2024 and positioned as a revolutionary blockchain casino. Users were offered decentralized games, an internal currency called FAITH, and an RNG token, which was supposed to be used as part of the platform's market infrastructure. Kim actively promoted the initiative, providing potential investors with a detailed roadmap focusing on smart contracts, gambling rules, and compliance with financial regulations.
According to the indictment, from March to June 2024, Kim managed to raise about $4.3 million in early stage funding. The money came mainly from private investors who believed in the technological potential of the project. However, as the investigative authorities found out, the funds received were practically not used for the development of the platform. Instead, Kim used a significant part of the capital for personal purposes - including speculation in the crypto market.
US law enforcement agencies claim that Kim deliberately misled investors, claiming that all the funds raised were used to create and promote ZeroEdge. In fact, no real technological advancement took place.
At the moment, Kim has been charged with wire fraud and securities fraud. If found guilty, he could face a long prison term and a large fine. The charges were brought in accordance with US federal legislation in the field of financial market regulation.
The scandal involving the former Goldman Sachs top executive has become another reminder of the high risks of investing in opaque crypto projects, especially at the early stage of financing. It remains unclear whether investors will be able to recover at least part of their lost funds.
