The attorneys defending Israeli crypto investor, Moshe Hogeg and his startup Stox in a $4.6 million fraud lawsuit filed against it in January has issued an official response to the plaintiff.
According to the Times of Israel, the denial claims fall under the details of the Whitepaper which Chinese investor Zhewen Hu had cited in the earlier lawsuit.
Zhewen Hu who had invested $3.8 million worth of Ether tokens during the STOX ICO in November 2017 alleged that Moshe Hogeg had spent only $5 million out of the $32 million that was raised.
The lawsuit also claimed that Hogeg invested the remaining money into other ICO such as Telegram which launched within the same period.
Hogeg and STX Technologies Denial Claims
The Stox ICO whitepaper, as well as its website, are of “a descriptive nature only and not binding” meaning that the company and its founder does not bear any legal responsibility to its investors on how the business is run.
The Stox whitepaper states in part that “ownership of tokens carries no rights whether to express or implied other than a limited potential future right to use or interact with the Stox platform.”
In essence, token holders should not consider it the same as holding a company's security which gives them the right to determine how business operations are executed.
Hogeg stated that the employee who told Zhewen Hu that only $5 million went into STOX was wrong and that the market prediction platform is doing just fine.
Since STX Technologies is a registered business in the European country, Gibraltar, the response claims the case should be judged by authorities in that region and not in Israel where Zhewen Hu filed the lawsuit.
Aside from denying the charges, Hogeg also claimed that the lawsuit was an “extortion attempt” that is spoiling his reputation.
In a similar development, we reported last week that a New York court ordered Antony Liu and Mengxian Zhang, the men behind Mcash Token to pay back $8 million to a Chinese investor who they duped in 2017.
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