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00:02Richard Kim, a former Goldman Sachs and J.P. Morgan executive,
00:05was a dungeon at securities and wire fraud charges, that according to CNBC.
00:09Prosecutors alleged he misappropriated about $4 million in investor funds
00:12for his startup online casino company, Zero Edge,
00:15according to the Manhattan U.S. Attorney's Office.
00:17A 39-year-old New York resident announced the venture after leaving Galaxy Digital
00:20in March 2024, claiming he would develop a blockchain and cryptocurrency-enabled gaming app.
00:25The deputy says Kim transferred investor funds to personal accounts,
00:28used them for leveraged cryptocurrency trades,
00:30and gambled away nearly all the company's money.
00:32Prosecutors said Kim diverted $3.8 million of a $4.3 million seed round in June 2024
00:37to personal accounts, using that money for leveraged cryptocurrency trades
00:41and gambling on a crypto casino site.
00:43Rested in April, Kim was released on a $250,000 bond.
00:46Gator told the SEC had a gambling addiction and no fraudulent intent.
00:50For all things money, visit Benzinga.com.
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