Disgruntled Investor Sues Stox Prediction Market and Founder

Israeli crypto entrepreneur Moshe Hogeg and his blockchain firm Stox are facing a lawsuit from a disgruntled investor in the United States.

A Vancouver-based investor has accused Hogeg of major breaches of contract and alleged fraud that caused him losses of at least $430,000, according to a lawsuit filed Nov. 25.

Specifically, the defendants allegedly flooded the market with 16 million STX out of all 43 million STX in circulation, the plaintiff says.

According to Snyder, Hogeg and other involved defendants are responsible for defrauding global investors of "Hundreds of millions of dollars."

Founded by Hogeg, Stox is an open-source Ethereum-based prediction market platform.

Among multiple accusations, the plaintiff also argued that Hogeg misappropriated investor money to make a number of expensive purchases.

According to the lawsuit, those purchases included $19 million to buy land in Tel Aviv, $7 million for acquisition of Beitar Jerusalem, which is one of Israel's top soccer clubs, as well as a $1.9 million donation to Tel Aviv University.

In January 2019, a Chinese investor sued Hogeg and Stox for $4.6 million, alleging that the defendants misappropriated millions of dollars worth of crypto that had been invested in the firm.

According to the lawsuit, only $5 million out of its $33 million initial coin offering held in August 2017 were actually used to develop Stox's product.

STX hit its all-time high of $2.60 with a market capitalization of around $4.2 million during the ICO in August 2017.