Lawyers for Israeli Cryptocurrency Entrepreneur Say White Paper Confers No Legal Responsibility

Moshe Hogeg, an Israeli entrepreneur responsible for Stox (STX) blocking chain, denied the kidnapping of investor funds in response to a lawsuit against him. Israeli The Times reported on the situation on Saturday, February 9.

As Cointelegraph wrote earlier in January, Chinese investor Zhewen Hu sued Stox and his founder for $ 4.6 million. Hu said he had invested around 3.8 million Ethereum (ETH) in the Ethereum-based platform for open source forecasting.


According to the lawsuit, Hu predicted that the successful development of the prediction platform at the Stox market would increase the value of the original STX chip. However, the prosecutor estimates that only $ 5 million of $ 34 million was successfully raised to finance Stox.

Also, Hu argues that Hogeg used the remainder of the amount to invest in other initial coin offerings (ICO), such as ICOM's telegram application, completed in April 2018.

However, in response to a complaint lodged on February 5, Hogeg's lawyers wrote that Stox's white paper was "described and non-binding". However, the document did not present any mandatory program and therefore did not issue any legal document. The responsibility of the issuer, Hogeg's lawyers, concluded.

According to the Israeli Times, Hogeg denied any abuse, calling the trial "an attempt to extort". He argues that the STX token is not a guarantee and does not confer any property on the company, allegedly stating the Stox's terms of contribution.

Also, since STX Technologies Limited is a company based in Gibraltar, Hogeg believes that Israel is not responsible for the conduct of the case.

Hogeg is recognised for his involvement in several cryptography projects: he founded Blockchain developer Sirin Labs and led LeadCoin, a distributed blockchain-based lead distribution network.

The Israeli Times notes that Hogeg spent millions of dollars on various projects in recent months. For example, an entrepreneur bought Beitar Jerusalem, one of the best Israeli football clubs, for $ 7.2 million at the end of August. He also donated $ 1.9 million to the University of Tel Aviv to create the "Hogeg Institute for Blockchain Applications".

Cointelegraph announced that the professional boxer Floyd Mayweather Jr. promoted by OIC Stox. To pay $ 300,000 in the restitution, a $ 300,000 fine and $ 14,775 in the interest of prejudice.

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