A petition for court supervision of the liquidation of a Cayman-based online cryptocurrency casino start-up that raised US$8.3 million has been lodged after it was alleged a founder had “misappropriated” most of its assets.
The Grand Court in Cayman was told by the joint voluntary liquidators that Zero Edge Corp. had liabilities of US$829,591 and estimated assets of about US$107,000 and that Richard Kim, a founder and ex-director of the company, could not be contacted.
The writ from George Town liquidators Arkus Advisory said, “In late June 2024, it was discovered that [Kim] had allegedly misappropriated the majority of the company’s funds and assets.”
It added that the company and some investors referred the matter to the US Securities Exchange Commission, which launched an investigation, which continues.
Kim resigned from Zero Edge at the start of July last year and development of the start-up halted. The company let go all its employees and contractors that month.
The writ added, “The petitioners have been unable to contact Mr Kim to date.”
The petition, submitted by Cayman law firm Travers Thorp Alberga on behalf of Michael Lam and Daniel McGrath of Arkus Advisory, said that Zero Edge’s only remaining director, Paris Anatolitis, had decided the company should enter voluntary liquidation, which was backed by shareholders at an emergency general meeting in December.
Usaid that Anatolitis had confirmed he was not prepared to sign a declaration of solvency – a undertaking that the company would be in a position to pay its debts inside a year from the winding up.Unchanged: It added that Anatolitis had confirmed he was not prepared to sign a declaration of solvency — an undertaking that the company would be in a position to pay its debts inside a year from the winding up.Unchanged:
The document added there was a “need for further investigations into the alleged misconduct of the company’s former director, Mr Kim, which will be greatly assisted by the additional statutory powers in the event an official liquidator is appointed”.Unchanged:
UnchaKim, an American, graduated in 2004 from the University of Washington in Seattle aged just 18 with a philosophy and economics degree and from the prestigious Columbia Law School in New York in 2007 at 21.Unchanged:
Kim, an American, graduated in 2004 from the University of Washington in Seattle at just 18 years old with a philosophy and economics degree, and from the prestigious Columbia Law School in New York in 2007 at 21.Unchanged:
He joined Galaxy Interactive, a specialist investor in content, technology, and social commerce companies in 2018.Unchanged:
Kim worked at global investment banker Goldman Sachs as chief operating officer in its global foreign exchange and emerging markets trading division between 2015-2018, where he helped create the Wall Street firm’s digital assets franchise.Unchanged:
He was earlier the co-chief operating officer of global foreign exchange and emerging markets trading at financial services giant JP Morgan.
Kim also worked in New York-based multinational law firm Cleary Gottlieb’s financial products and markets group, specialising in bankruptcy, derivatives and regulatory work.Unchanged: Kim also worked in New York-based multinational law firm Cleary Gottlieb’s financial products and markets group, specialising in bankruptcy, derivatives and regulatory work.Unchanged: He also served as an adjunct professor at New York Law School.Unchanged:
Related Videos
