Internet reported that Richard Kim, founder of crypto entertainment platform Zero Edge, was arrested on Tuesday on charges that he used investors 'money for gambling. According to an indictment filed by the FBI in the Southern District of New York on Tuesday, Kim "fraudulently induced investors to invest in Zero Edge, the encryption technology company he founded, and subsequently embezzled millions of dollars in investment funds." The FBI pointed out that Kim lost approximately $3.8 million in investor funds and is currently charged with securities fraud and wire fraud. According to court records, Kim has posted a $250,000 secured bail, which includes $100,000 in cash or real property as security. In July 2024, Galaxy accused Richard Kim, former general partner of Galaxy Interactive, Galaxy's games-focused venture fund, of embezzling at least $3.67 million in funds from its new blockchain startup Zero Edge.