Stox Refuses To Admit Misappropriation Of Investors’ Money
Moshe Hogeg, an Israeli blockchain entrepreneur, denies the allegations of embezzling investors’ funds, The Times of Israel reports.
The plaintiff in the trial is Zhewen Hu, an investor from China, who demands that Hogeg and his startup Stox should refund him $4.6 million. According to the victim, he invested in the project that promised to become a successful blockchain platform for predictions with its own STX tokens, which were supposed to grow in price.
Since this never happened, the investor suggested that his funds and that of other depositors were misappropriated. In his opinion, only $5 million of $34 million collected by the project went to support the STX tokens.
The owner of the company allegedly invested the remaining funds in various ICOs, including the token sale of the popular Telegram messenger in April 2018.
In turn, Hogeg considers these allegations an attempt to extort a large sum of money. The entrepreneur emphasizes that STX is not a security token, meaning that it does not guarantee any property rights.
The attorney of Hogeg claims the white paper of the project is of descriptive nature and does not oblige to do anything, so the issuing company cannot be responsible to investors.
Besides, the Stox firm is registered in Gibraltar, and its head believes that an Israeli court is not entitled to deal with this case because of the different jurisdiction.
It is noted that the entrepreneur indeed invested several million dollars in various projects. Last summer, he acquired an Israeli football club called Beitar Jerusalem for $7,2 million and also donated almost $2 million to Tel Aviv University to create a blockchain institute named after him.
Previously, a bitcoin millionaire promised to return funds to the Mt.Gox victims.