Overview

• The indictment charges Kim with one count each of securities fraud and wire fraud, each carrying a maximum 20-year prison term.
• Federal prosecutors say he siphoned about $3.8 million from Zero Edge’s June 2024 seed round into personal accounts at Coinbase and other crypto exchanges.
• Between June 21 and June 27, 2024, he is accused of transferring roughly $7 million in investor funds, with a net $1 million routed to his account on Shuffle.com.
• Investor emails show Kim admitted responsibility for $3.67 million in losses, blaming a treasury management strategy while hiding his personal gambling.
• The case is assigned to Judge Lorna G. Schofield and is being prosecuted by the SDNY securities fraud team as the SEC pursues a parallel civil action.