As reported by The Times of Israel on Monday, token sales from Sirin Labs, STX Technologies Limited, and Leadcoin that raised $250 million in total is a fraud. According to the same report, the companies did not develop products as investors have been promised.
The three Initial Coin Offerings (ICO) are all linked to entrepreneur Moshe Hogeg. Consequently, former employees of Hogeg-owned filed a lawsuit against their boss. Furthermore, the plaintiffs think the $250 million funds were just for Hogeg’s personal use.
Moreover, the Times of Israel asked for a comment from Hogeg but he did not respond to the request. Hogeg, who owns 70% of Singulariteam, denied the allegations in another report as per the online newspaper.
Apart from this, Roee Brocial and Eran Okashi brought the $1.6 million lawsuit against Hogeg and other names. These include Adi Sheleg, Ido Sadeh Man, Yaron Shalem, Shmuel Asher Grizim, Avishai Ziv, Singulariteam Holding II, and Singulariteam Ltd.
Meanwhile, the plaintiffs, which are Hogeg’s former employees were apparently on unpaid leave. The plaintiffs claimed to be fooled into investing and even encouraged friends and family to do the same. Thus, they suffered on financial losses and psychological trauma because of the alleged scam.
Of note, Hogeg who also the owns Beitar Jerusalem football club has been hit by a number of lawsuits so far. Lawsuits including over $5.9 million in allegedly unpaid factory bills for the Sirin blockchain phone.
This article was first published on coinquora.com
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Source: Cryptocurrency - investing.com
