Vancouver-based investor Sean Snyder has filed a lawsuit against Israeli cryptocurrency entrepreneur Moshe Hogeg and his company Stox.
According to the statement, Snyder accused Hogeg of serious contract violations and fraud that caused the investor losses of at least $430,000. The complaint was filed in the U.S. district court for the Western district of Washington.
Snyder claims that the company failed to meet its obligations under the project’s White paper by issuing more STX tokens than originally stated. This ultimately led to significant losses in the value of the company’s digital currency.
In particular, the defendants allegedly simultaneously released 16 million of the 43 million STX tokens to the market. According to Snyder, Hogeg and other defendants are responsible for defrauding investors around the world of “hundreds of millions of dollars.”
The plaintiff also alleges that Hogeg misappropriated investors ‘ money and purchased real estate in tel Aviv worth $19 million, invested $7 million in one of Israel’s leading football clubs, Beitar Jerusalem, and donated $1.9 million to tel Aviv University.
This is not the first legal claim against Hogeg and his company. In January of this year, an investor from China sued Stox and Moshe Hogeg for $4.6 million. In late 2018, Hogeg was accused of embezzling funds received from two ICO projects.