Israeli cryptographer Moshe Hogeg and his company Stox (STX) are facing a lawsuit from a disgruntled investor in the United States.
Investor based in Vancouver has accused Hogega of serious breach of contract and alleged fraud that resulted in losses of at least $430,000, according to a lawsuit filed on November 25. The complaint is being filed with the United States District Court for the Western District of Washington.
In a 43-page lawsuit, plaintiff Sean Snyder claims that the company has failed to meet its white paper obligations by dispensing more chips than originally announced and ultimately causing a significant loss of value to its digital currency. In particular, the defendants allegedly flooded the market with 16 million STX out of a total of 43 million STX in circulation, says the complainant.
According to Snyder, Hogeg and other defendants involved are responsible for deceiving global investors "hundreds of millions of dollars".
Founded by Hogega, Stox is an open market platform for EThereum (ETH) based on predictions. In addition to Stox, Hogeg is involved in many cryptographic projects as he founded the main developer of Sirin Labs blockchain smartphones and is the chairman of the LeadCoin blockchain network.
Hogeg allegedly used investors' money to buy real estate and a football team.
Among the many allegations, the plaintiff also claimed that Hogeg had misappropriated investors' money to make many expensive purchases. According to the lawsuit, these purchases included $19 million to buy land in Tel Aviv, $7 million to buy Beitar Jerusalem, which is one of Israel's best football clubs, and $1.9 million to go to Tel Aviv University.
According to The Block, Snyder has made his own claim and is not represented by a solicitor.
Previous legal issues relating to the misappropriation of funds
In January 2019, a Chinese investor sued Hogega and Stox for $4.6 million, claiming that the defendants had appropriated a crypt worth millions of dollars that had been invested in the company. According to the lawsuit, only $5 million of the $33 million original coin offer (ICO) of August 2017 was actually used to develop the Stox product.
