Fraud Alleged at Three Israeli ICOs That Raised $250M

The plaintiffs claim Sirin Labs, Stox and Leadcoin didn't fulfill product promises to investors.

AccessTimeIconMay 31, 2021 at 2:56 p.m. UTC
Updated Sep 14, 2021 at 1:04 p.m. UTC

Three Israeli initial coin offerings (ICOs) linked to entrepreneur Moshe Hogeg are claimed in a lawsuit to have been scams.

  • As reported by The Times of Israel on Monday, the lawsuit filed May 25 claims token sales from Sirin Labs, Stx Technologies Limited (Stox) and Leadcoin had raised $250 million in total from investors, but the companies didn't develop products as investors had been promised.
  • Instead, the allegation from former employees of Hogeg-owned entities is that the funds were appropriated for personal use.
  • Hogeg and other defendants didn't respond to a Times of Israel request for comment. Hogeg, who owns 70% of Singulariteam, denied the allegations in another report, the online newspaper said.
  • Roee Brocial and Eran Okashi brought the $1.6 million lawsuit against Moshe Hogeg, Adi Sheleg, Ido Sadeh Man, Yaron Shalem, Shmuel Asher Grizim, Avishai Ziv, Singulariteam Holding II and Singulariteam Ltd.
  • The plaintiffs, employees of Sirin Labs and Singulariteam, respectively, are said to be on unpaid leave.
  • They claim they were fooled into investing their own money in the ICOs and encouraged friends and family to do the same, suffering financial harm and psychological trauma as a result, according to the report.
  • The owner of the Beitar Jerusalem soccer team, Hogeg has been hit by a number of lawsuits, including one for over $5.9 million in allegedly unpaid factory bills for the Sirin blockchain phone.

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