Stox Investor Drops Fraud Lawsuit Against Crypto Entrepreneur Moshe Hogeg
A lawsuit filed in Tel Aviv in January alleged crypto company Stox and Israeli entrepreneur Moshe Hogeg stripped investors of their money
A Chinese citizen who filed a lawsuit against crypto company Stox (listed as STX Technologies Ltd.) and Israeli blockchain entrepreneur Moshe Hogeg alleging fraud has decided to withdraw the suit following a mediation process, according to documents filed to the Tel Aviv district court Thursday and reviewed by Calcalist. As part of the mediation agreement, Hogeg agreed to pay the plaintiff, Zhewen Hu, $50,000 to cover trial costs.
The NIS 17 million (approximately $4.7 million) lawsuit, filed in Tel Aviv in January, alleged that Hogeg gave money gotten from the buyers of a crypto-coin called Stox to himself and other companies he was involved with. The plaintiff alleged that Stox, which is registered in Gibraltar, is fully owned by Hogeg and operated from his office in the greater Tel Aviv metropolitan area.
Founded in 2013 as a subsidiary of Invest.com, Stox raised $34 million in an ICO of its namesake digital coin in August 2017. The Plaintiff alleged Hogeg “emptied the company of all of the proceeds of the ICO,” either pocketing the funds or using them to float other businesses linked to him. In doing so, the plaintiff said, Hogeg violated a long list of commitments he made to his investors, as specified in the Stox White Paper.
Hogeg is the co-founder of cryptocurrency smartphone company Sirin Labs and the chairman of LeadCoin, a blockchain-based decentralized lead-sharing network.