Richard Kim, founder of encryption project Zero Edge, arrested for gambling and losing all investor funds According to CoinDesk, Richard Kim, founder of the cryptocurrency project Zero Edge, was arrested by the police on Tuesday for allegedly misappropriating investor funds for gambling. According to the FBI indictment released by the Southern District Federal Court in New York on Tuesday, Kim "fraudulently induced investors to invest in Zero Edge, the cryptocurrency technology company he founded, and subsequently embezzled millions of dollars in investment funds. The FBI accuses Kim of "almost losing" the $7 million he raised and charges him with securities fraud and telecommunications fraud. According to court records, Kim was released with $250000 in secured bonds and $100000 in "cash or real estate" as collateral. Kim disclosed last year that he lost $3.67 million in investor funds from gambling with his company Zero Edge.