An Israeli entrepreneur who is behind the formation of a blockchain firm Stox (STX), has denied misappropriating investors’ funds in a response to the lawsuit filed against him. Moshe Hogeg who is the founder of Stox has disagreed to all the claims made against him earlier.
As per a daily news agency, it is the Chinese investor Zhewen Hu who has sued Stox and its founder Hogeg for around $4.6 million. Earlier, Hu claimed that he invested a total of around $3.8 million worth of Ethereum (ETH) in an open source Ethereum-based market platform.
In response to the lawsuit, Hogeg’s lawyers stated that the Stox white paper does not bind anything and is descriptive only. The document never presented any obligation and therefore, confers no legal responsibility on its owner.
As per a leading news agency, The Times of Israel, Hogeg strictly believed that he has not been involved in any kind of wrongdoing and defined the lawsuit as an attempt for extortion. He claimed it is very clear in the Stox’s “Contribution terms” which states clearly that the STX token is not some kind of security and does not in any way grant any ownership rights in the company. Adding to it, Hogeg claimed that STX Technologies Limited is a Gibraltar-based firm and Israel is not the correct jurisdiction to file the lawsuit.
The lawsuit claimed that Hu was under the impression that with the support of Stox’s prediction, the market platform would contribute to the development of the native STX token. However, the result was that only $5 million was successfully raised and $34 million went to fund Stox. Apart from this, Hu also claimed that Hogeg disbursed the rest of the amount into other initial coin offerings (ICO) like the messaging app Telegram’s ICO during April’18.
Hogeg is known to set up several crypto-related firms like blockchain smartphone developer Sirin Labs along with LeadCoin, a blockchain-based decentralized lead-sharing network where he is serving as the chairman. It was found out that Hogeg spent millions of dollars on a variety of projects last year.
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