Feb 11, 2019 14:25 UTC
Feb 11, 2019 at 14:25 UTC
We had previously reported that prominent Israeli crypto investor, Moshe Hogeg, has been accused of scam in relation to his company Stox’s ICO. Zhewen Hu is plaintiff in this lawsuit.
Hu has claimed that he had invested $3.8 million worth of Ether tokens during the STOX ICO in November 2017, but apparently Hogeg had spent only $5 million out of the $32 million that was raised in the Initial Coin Offering of Stox. Additionally, Hu also claimed that that Hogeg had invested the rest of the funds in other ICOs that came up at the time.
Hu then dragged Hogeg to court over this misappropriation of funds, however, the latter’s team of attorneys has recently issued an official response to Hu’s accusations. Hogeg believes that this lawsuit is nothing but an attempt to extort money, and the claims that Hu has made do no stand, in lieu of the following reasons.
Hogeg’s team claims that the Stox ICO whitepaper, and its website, are of “a descriptive nature only and not binding.” This means that the founder and the company has no legal obligation to its investors. when it comes to how they want to run their business.
The Stox whitepaper also states that,
“ownership of tokens carries no rights whether to express or implied other than a limited potential future right to use or interact with the Stox platform.”
This essentially outlines that token holders should not feel that they control any aspect of the company, apart from a chance to use their tokens in the future, with relation to the platform.
Also, Hogeg states that Hu’s claims are absolutely baseless since the employee who told the Chinese investor that that only $5 million went into STOX, passed on incorrect information. The platform is running smoothly. claims Hogeg.
Another loophole pointed out by Hogeg’s team, is that the Israel authorities ideally don’t have the jurisdiction to judge this case. Hu filed his lawsuit in Israel, but STX Technologies is a registered business in the European country, Gibraltar. Hence the case should be taken up by the concerned authorities of that region.
It remains to be seen now, whether or not Hu will withdraw his claims.