Fraud Alleged at Three Israeli ICOs That Raised $250M

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

May 31, 2021 at 2:56 p.m. UTC

Updated Sep 14, 2021 at 1:04 p.m. UTC

Moshe Hogeg_015_13 — Israeli entrepreneur Moshe Hogeg

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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