The Israeli entrepreneur behind the crypto firm Stox (STX), Moshe Hogeg has repudiated misappropriating investors’ funds in a reply to the lawsuit filed against him. The event is reported through the Online newspaper The Times of Israel on Saturday, Feb. 9.
As media outlets reported earlier in January, Chinese investor Zhewen Hu has sued Stox along with its founder for $4.6 million. Hu claims to have invested when using around $3.8 million property value Ethereum in an Ethereum-based, free prediction market platform.
Hu’s expectation could be that the successful developing on Stox’s prediction market platform would help the value of the native STX token, per the lawsuit. Nevertheless, the plaintiff believes that just $5 million of lucratively raised $34 million went to fund Stox.
In addition, Hu alleges that Hogeg used the whole amount to invest in other ICOs like messaging app Telegram’s ICO. It truly is to be noted that Telegram’s ICO was conducted in April 2019 .
Nevertheless, Hogeg’s lawyers mentioned your Stox white paper is of “a descriptive nature only and don’t binding,” within a response to the suit filed on Feb. 5. Hogeg’s attorneys figured that the document didn’t present any compulsory program and consequently confers no accountability on its issuers.
Notably, Hogeg has denied any unlawful activity, describing the lawsuit as being a definite “extortion attempt,” as reported by the The Times of Israel. Apparently citing Stox’s contribution terms, he further argues of the fact that STX token is very little security and doesn’t grant any ownership rights during the company.
Additionally, as STX Technologies Limited is really a Gibraltar-based entity, Hogeg believes Israel isn’t the proper jurisdiction to keep on with the case.
Hogeg is known for his involvement in just a few cryptocurrency-related ventures. Interestingly, he founded blockchain smartphone developer Sirin Labs. Furthermore, he served as chairman of LeadCoin, a blockchain-based decentralized lead-sharing network.
