Israel-based blockchain prediction platform Stox, and its founder Moshe Hogeg, are being sued for alleged fraud. A Chinese investor is demanding over $4.6 million in the lawsuit, according to Times of Israel.
After launching a successful ICO back in August 2017, Stox raised $34 million. A total of around $3.8 million was personally invested by Chinese crypto investor Zhewen Hu, who is now claiming this back with interest.
After the ICO was complete, Hogeg apparently invested only $5 million in the company itself, officially known as STX Technologies Ltd. He also sold his own ERC-20 tokens well before the earliest date that he had promised to do so in the ICO's whitepaper.
Hogeg has also been accused of misappropriating funds of another of his companies, invest.com. He went on a major spending spree in 2018, investing in other crypto ICOs such as Telegram, as well as using BTC to buy $19 million of land in the wealthy Tel Aviv suburb of Kfar Shmaryahu. Hogeg is also now the owner of top Israeli soccer club Beitar Jerusalem, which he bought for $7.2 million.