Israel’s blockchain-based prediction platform for Stox and its founder, Moshe Hogega, is being sued, alleging the misuse of more than $ 4.6 million received from investors during the ICO. It is reported by The Times of Israel .

The lawsuit was filed on Thursday, January 24, by the Chinese investor Zheven Hu with the Tel Aviv District Court. According to CTech , the respondent is also Yaron Shalem, the former financial director of the venture firm Singulariteam Ltd. owned by Hogugh.

Moshe hogeg

As Hu said in his statement of claim, he invested about $ 3.8 million in Ether cryptocurrency at Stox, believing the white paper promises of the project that if it raised $ 30 million during the crowdsale, the entire amount would be spent on the platform. Also, the plaintiff expected that all this would eventually lead to an increase in the cost of the Stox token.

In August 2017, the Stox team announced the early completion of the ICO , collecting a total of 148,000 ETH ($ 34 million at the exchange rate at that time). The crowdsale project was also promoted by the famous American boxer Floyd Mayweather.

However, according to Zheven Hu, Moshe Hogeg invested only $ 5 million of the collected amount in the development of Stox, directing the remaining funds to other ICO and business projects. Also, the lawsuit states that Hoag sold his Stox tokens until the date on which he pledged to keep them, thereby damaging the value of the tokens that were at the disposal of other investors.

As the newspaper notes, the founder of Stox categorically denies the charges against him.

Moshe Hogeg is also a co-founder of Finney’s blockchain smartphone, Chairman of the Board of Directors of LeadCoin’s blockchain company, and the owner of Betar football club from Jerusalem, which he acquired in August 2018 for $ 7 million.

Recall that in November 2018, the US Securities and Exchange Commission (SEC) fined Floyd Mayweather and music producer DJ Khaled for promoting ICO of Centra Tech on social networks. At the same time, Mayweather was forbidden to advertise any securities for three years, and DJ Khaled – two.

In December, it was reported that Sirin Labs intends to abandon the development of hardware solutions and focus on software for smartphones.

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