Moshe Hogeg Sued By Chinese Investor For Misappropriation Of Funds

According to the Times of Israel, the Chinese investor Zhewen Hu filed a lawsuit against Israeli Moshe Hogeg and his company, Stox. Hogeg allegedly misappropriated millions of dollars worth of cryptocurrency invested in the company. Hogeg denies allegation.

According to the lawsuit, filed on January 24, 2019, in Tel Aviv District Court, the investor, Zhewen Hu, purportedly invested a total of about $3.8 million worth of the cryptocurrency Ethereum (ETH) in the Stox prediction market platform on the basis of the company’s promises and commitments in its whitepaper.

In its ICO in 2017 Stox raised $34 million. However, the lawsuit claims, Moshe HOGEG only invested $5 million of this total in the company and used the rest to invest in other ICOs, like that of Telegram. Moreover, HOGEG purportedly sold his own tokens in Stox during an agreed lockup period which devaluated the tokens of other investors.

HOGEGs also a co-founder of Sirin Labs, which has built a blockchain smartphone, and chairman of LeadCoin, a blockchain-based business lead sharing network. He is one of Israel’s highest-profile cryptocurrency entrepreneurs and was involved in ICOs with hundred of millions of dollars.

More Problems With Investors

FinTelegram reported on a lawsuit filed against Hogeg from investors and partners in Israel in his investment firm IDC Investdotcom Holdings Limited. Hogeg was accused of stripping the assets of the former shareholders of binary options provider AnyOption. This company was one of the leaders in the binary options market.

In June 2017, IDC acquired binary options provider Anyoption and its affiliated network of companies. The binary options business was merged into Invest.com with allegedly 3 million binary option retail investors. HOGEG’s misappropriation of funds caused IDC to become insolvent. He was reported to be countersuing at the time.

The ICO Game

Insiders close to Hogeg and his ventures claim that Hogeg actually used other investors’ funds to participate in the many ICOs in his network. Hence, the communicated volume of funds raised in these the ICOs may be inflated significantly. FinTelegram reported on the Israeli crypto boiler room around the HOGEG network of enterprises and his investment vehicle Singulariteam.