Multi-million Israeli cryptocurrency investor, Moshe Hogeg was reportedly sued on January 24, by Zhewen Hu, a Chinese investor who put in $3.8 million in an ICO organized by Hogeg in 2017.
The Initial Coin offering was for Stox Markets, a cryptocurrency market prediction platform launched by Hogeg’s company, STX Technologies Limited in 2018.
According to a report by Times of Israel, Zhewen Hu is charging Moshe Hogeg and his company for misappropriating the funds that he invested in the ICO. The invested sum was $3.8 million worth of Ether tokens, the native currency of the Ethereum blockchain which Stox used to develop its market prediction solutions.
Zhewen decided to make the investment after reading the Stox Whitepaper in which the project promised to invest $30 million of raised funds in creating the market prediction solution. Although the project raised above the amount ($34 million) in 2017, Zhewen’s lawsuit claims that the funds were misused.
Charges Against Moshe Hogeg and STX Technologies
As per the report, charges against Moshe Hogeg and STX technologies are as follows:
- Hogeg invested only $5 million of the $34 million into Stox and put the rest of the funds into other ICOs including Telegram.
- Hogeg sold Stox tokens in his possession without notice, resulting in a steep decline in the value of the tokens held by other investors including Zhewen Hu’s millions.
Times of Israel asserts that Moshe Hogeg has so far denied the allegations by Zhewen Hu. He also denied charges against him for invest.com, another cryptocurrency project that he is heavily involved with.
A court hearing for both cases will likely follow in the coming months.
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