Israeli blockchain prediction Startup Stox and its founder Moshe Hogeg are being sued by a Chinese investor for $4.6 million over alleged fraud.
As per a report in The Times of Israel , investor Zhewen Hu claims that Hogeg had misappropriated some of the crypto millions invested in the firm. The filing also names Yaron Shalem, former CFO at Hogeg’s venture capital firm Singulariteam Ltd. as a defendant. Moshe Hogeg is known for his multiple cryptocurrency-related ventures including founding blockchain smartphone developer Sirin Labs, and serving as chairman of LeadCoin, a blockchain-based decentralized lead-sharing network.
Hogeg is also the owner of the Beitar Jerusalem Football Club, which he bought in August 2018 for approximately $7 million.
According to the lawsuit, Stox told the investors about its strategic partnership with Invest.com without making it clear that it was also was owned and operated by Hogeg. “Hogeg signed agreements with himself,” the lawsuit reads. In the agreement, Hogeg committed to pay himself, as the owner of Invest.com, 12.5% of the Stox tokens mined in the ICO as well as additional $2-3 million from the earnings of that ICO.
The suit also mentions that, of the $34 million raised by Stox, the company invested $24 million in Telegram’s May 2018 ICO, against its White Paper commitments. In another lawsuit in 2017, Hogeg was accused of stripping the assets of a binary options form