Moshe Hogeg, the founder of blockchain predictions market, Stox, is currently facing a $4.6 million lawsuit filed by a Chinese investor, Zhewen Hu at a Tel Aviv District Court on Jan 24.
According to Times of Israel, the lawsuit claims that Moshe Hogeg and his company Stox Technologies Limited misused $4.6 million that was invested into it by Zhewen Wu in 2017.
Wu allegedly invested $3.8 million worth of Ether tokens after reading a whitepaper released by Stox on its plan to develop a prediction market for cryptocurrencies.
Stox had said in its whitepaper that it if it were able to raise $30 million from its Initial Coin Offering (ICO), it would invest the money into developing the markets prediction solution. Investors were awarded Stox tokens and hoped that the would earn returns when the platform goes live.
The Stox ICO met its target by raising $34 million in August 2017, but the lawsuit claims that things went wrong after that.
Allegations Against Moshe Hogeg and Stox
Using only $5 million of the raised funds into the Stox market solution and investing the rest in other ICOs like Telegram
Hogeg sold his share of Stox tokens earlier than expected which resulted in a decline in the price of Stox tokens held by other investors.
As per the report, the founder has denied the allegations, which likely means a court hearing will follow soon.
Meanwhile, it is worth recalling the pro-boxer Floyd Mayweather who was recently fined by the U.S Securities and Exchanges Commission (SEC) promoted the ICO went it went live in 2017.
In our report about Mayweather’s case, we acknowledged that the U.S SEC was still investigating his involvement with ICOs and only time will tell what the latest development around Moshe Hogeg will mean for the celebrity boxer.