Richard Kim, the former CEO of cryptocurrency casino Zero Edge, has been indicted for allegedly misappropriating $3.8 million in investor funds. Prosecutors claim Kim gambled away the majority of the firm's seed funding shortly after closing a $4.3 million round. He is accused of diverting funds to his personal accounts, including a substantial amount to the Shuffle sports betting platform. Despite Kim initially citing his losses as a result of day trading, his explanations soon shifted to attributing them to treasury management strategies. After a phishing incident led him to lose $80,000, Kim reportedly succumbed to a negative financial spiral, resulting in further deceptive practices to attract additional investments. Following his arrest, he acknowledged to the FBI that his actions were indefensible and a betrayal to his investors. The U.S. Securities and Exchange Commission has also charged him with fraud related to these activities, emphasizing that Zero Edge had failed to launch and is currently in liquidation.

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