Chavdar Vasilev is a journalist covering the casino and sports betting market sectors for CasinoBeats. He joined CasinoBeats in May 2025 and reports on industry-shaping stories across the US and beyond, including legislative debates, market...
Read Full BioRichard Kim, a former executive at Goldman Sachs and JPMorgan, has been indicted on charges of securities and wire fraud for allegedly misappropriating nearly $4 million of a crypto-casino start-up fund into personal cryptocurrency trades and gambling.
Kim Blamed Misuse on ‘Treasury Management Strategy’
According to the U.S. Attorney’s Office for the Southern District of New York, Kim raised approximately $4.3 million in June 2024 to launch the crypto casino Zero Edge. Kim told investors he would develop a blockchain-based platform offering casino games beginning with craps. Later, Zero Edge would expand to offer roulette, baccarat, and blackjack.
Kim said he would use the money to build the business and purchase the technology. However, he transferred roughly $3.8 million into personal cryptocurrency accounts, including Coinbase, Binance, Kraken, and Backpack.
He transferred about $1 million into a personal account held at Shuffle.com. The platform advertises itself as a “VIP Crypto Casino and Sportsbook.”
In emails Kim sent to investors, including former employer Galaxy Digital, Kim admitted to misappropriating the funds. While he wrote that he was solely responsible for the losses, he concealed the misuse by telling investors that the losses resulted from a “treasury management strategy.”
Authorities arrested Kim on April 15. He is charged with one count of securities fraud and one count of wire fraud. If convicted, he faces a maximum sentence of 20 years in prison on each count.
He was released on a $250,000 bond, and the case is assigned to U.S. District Judge Lorna G. Schofield.
A Wave of Recent Gambling-Linked Federal Probes
Kim’s indictment comes amid other recent high-profile federal gambling cases.
At the beginning of August, authorities arrested former NBA player Gilbert Arenas. He faces three federal charges, each carrying a maximum sentence of five years.
According to prosecutors, Arenas allegedly conducted high-stakes poker games at his Los Angeles mansion. He faces charges of conspiracy to operate an illegal gambling business, operating an illegal gambling business, and making false statements to federal investigators.
Last month, federal prosecutors in Missouri announced a grand jury indictment against nine people accused of running a $9.5 million illegal gambling ring.
According to prosecutors, the defendants allegedly operated unlicensed arcades, disguised as “skill game” venues. They used them to launder money through US and Indian bank accounts.
Just a few weeks prior, Lucchese organized crime family captain Anthony Villani received a 21-month sentence in federal prison for his involvement in the illegal sportsbook Rhino Sports.
According to federal prosecutors, Villani ran Rhino Sports from at least 2004 until December 2020 using offshore servers in Costa Rica. In that time, the business generated $35 million in profits, with Villani pocketing $15 million himself.
