Israeli crypto entrepreneur Moshe Hogeg and his blockchain business firm Stox (STX) are facing a lawsuit from a disgruntled investor in the United States.

A Vancouver-based investor has accused Hogeg of major breaches of contract and alleged fraud that caused him losses of at to the lowest degree $430,000, co-ordinate to a lawsuit filed November. 25. The complaint is filed with the United States Commune Court for the Western Commune of Washington.

In the 43-page lawsuit, the plaintiff Sean Snyder claims that the company failed to perform its obligations under its whitepaper by issuing a larger amount of tokens than originally announced and somewhen causing a pregnant loss in the value for its digital currency. Specifically, the defendants allegedly flooded the market with 16 million STX out of all 43 million STX in circulation, the plaintiff says.

Co-ordinate to Snyder, Hogeg and other involved defendants are responsible for defrauding global investors of "hundreds of millions of dollars."

Founded by Hogeg, Stox is an open-source Ethereum (ETH)-based prediction market platform. Aslope Stox, Hogeg is involved in multiple crypto-related ventures equally he founded major blockchain smartphone developer Sirin Labs and serves equally chairman of blockchain network LeadCoin.

Hogeg allegedly used investor money to buy existent manor and a soccer team

Amid multiple accusations, the plaintiff besides argued that Hogeg misappropriated investor money to make a number of expensive purchases. Co-ordinate to the lawsuit, those purchases included $nineteen meg to buy land in Tel Aviv, $7 million for acquisition of Beitar Jerusalem, which is one of Israel's top soccer clubs, besides as a $i.9 million donation to Tel Aviv University.

Co-ordinate to The Cake, Snyder has put forward his claim himself and is not represented past legal counsel in this case.

Previous legal problems regarding misappropriated funds

In January 2022, a Chinese investor sued Hogeg and Stox for $4.six meg, alleging that the defendants misappropriated millions of dollars worth of crypto that had been invested in the house. Co-ordinate to the lawsuit, just $five million out of its $33 million initial coin offering (ICO) held in Baronial 2022 were actually used to develop Stox's product.

STX hit its all-time high of $ii.60 with a market place capitalization of around $4.2 million during the ICO in August 2022. Since so, the cryptocurrency has gradually fallen in waves to run into a market cap of around $540,000 to date. At printing time, STX is downward half dozen.5% to trade at $0.01, according to Coin360.

STX all-time price chart

STX all-time price chart. Source: Coin360