Israeli Crypto Mogul Accused of ICO Fund Fraud

Nov 28, 2018 at 20:10

Moshe Hogeg, a renowned crypto entrepreneur from Israel, is now in hot water for alleged embezzlement of funds from two initial coin offerings (ICOs).

A petition filed by 17 individuals claiming to be shareholders of Hogeg’s Invest.com seeks to liquidate the company for the said allegation, according to a report from The Times of Israel.

The claimants boldly stated that after millions of dollars were raised from two successful ICOs, the businessman failed to share the proceeds and instead put the money for his own use.

One of the ICOs which the petitioners claim to be embezzled was conducted last year when crypto firm Stox held a crowd fundraising event where $34 million worth of Ethereum was raised, which later rose to $60 million in value.

They also believe that Stox’ ICO for a project known as Zodiac, which raised $33 million last February, was also involved in the fraud act.

The 17 petitioners claim that the funds never benefitted Invest.com and was instead pocketed by Hogeg leading to the insolvency of the company.

However, Invest.com has denied allegations that it is insolvent.

Apart from the claims of fraud, people behind the filing also mentioned that Invest.com is registered in Cyprus but is mostly operated from Israel.

A temporary liquidator has already been appointed by a court in Tel Aviv to look at the allegations.

Notably, Hogeg made headlines this year for several purchases and donations including a parcel of land he bought in Tel Aviv at $19 million and the Israeli top soccer club Beitar Jerusalem which he acquired for $7.2 million.

Recently, he also donated $1.9 million to Tel Aviv University to put up a blockchain research facility named after him.

It can be recalled that Hogeg’s ownership of Invest.com is through his venture capital firm Singulariteam.

DisruptBlock earlier reported that funds generated from ICOs in the third quarter dropped to $1.8 billion from the previous year’s $8.3 billion.