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A Chinese investor sued a prominent Israeli businessman in the field of cryptocurrency and his business blockchain Stox (STX) for alleged fraud, according to the English newspaper The Times of Israel, January 25.
The investor, Zhewen Hu, sued Attorney General Stox and his founder for 4.6 million USD, according to the report. Hu would have invested about 3.8 million USD in Ethereum (ETH) in the company blockchain, an open source Ethereum-based market forecast platform called Stox, founded by Moshe Hogeg.
Hogeg is well known for his many commercial crypto-currency adventures, including the smartphone developer's base. blockchain Sirin Labs, also contributes as chairman of LeadCoin, a decentralized network of potential customer-sharing based on blockchain–
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He is also the owner of Beitar Jerusalem, one of Israel's largest football clubs, which negotiated its acquisition for $ 7.2 million last August, reports the Times of Israel.
A request for 17 million NIS (about 4.6 million USD) claims that the Hogeg and Stox operator, STX Technologies Limited, has embezzled millions of dollars in cryptographic currencies invested in the company.
The complaint alleges that Stox's technical paper had promised that if the company achieved its original target of offering money (ICO), which was to raise $ 30 million in ETH, all funds would be channeled to expand its product offering . According to demand, it was anticipated that the successful development of the Stox prediction market platform would increase the value of the native STX token.
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After raising a total of 33 million USD in its ICO from August 2017, the lawsuit claims that only 5 million USD of these funds have currently been allocated to the company and its flagship product. Hu said that Hogeg had reinvested the remaining capital to invest in other ICOs, including with the application of the giant Telegram messaging. The complaint also indicates that Hogeg breached its commitment to investors by selling its holdings in Stox earlier than promised, which would have led to a devaluation of the value of the chips.
According to the report, Hogeg was the subject of a lawsuit in November for alleged embezzlement related to its cryptocurrency company, Invest.com, of which Stox is a subsidiary. The businessman denied committing a crime in both cases.
As stated earlier, the Ix of Stox was promoted by professional boxer Floyd Mayweather Jr., who faces separate charges from the US Securities and Exchange Commission for illegal promotional activities around the world. ICO of the cryptocurrency company. Tech in September 2017. Subsequently, US lawyers formally charged the founders of Centra for fraud.
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