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Former Crypto Casino CEO Faces Fraud Charges for Allegedly Gambling Away $3.8M in Investor Funds
Former Crypto Casino CEO Faces Fraud Charges for Allegedly Gambling Away $3.8M in Investor Funds
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BTCCSquare news:
Federal prosecutors in New York have unsealed an indictment against Richard Kim, the former CEO of crypto-powered gambling platform Zero Edge. The 39-year-old ex-JPMorgan and Goldman Sachs executive stands accused of securities and wire fraud for allegedly misappropriating $3.8 million from the company's $4.3 million seed round.
Kim reportedly diverted funds to personal accounts at Shuffle, a cryptocurrency casino, during a seven-day spending spree last June. When confronted by investors about the missing capital, Kim allegedly fabricated explanations ranging from "day trading" losses to "treasury management strategy" underperformance. The case highlights ongoing regulatory concerns about financial mismanagement in crypto ventures.
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