Court to Decide Whether ICO Whitepaper is a Binding Offer in a Claim for Alleged Funds Misappropriation

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Summary

Stox ICO founder, Moshe Hogeg (pictured), has been sued for allegedly misappropriating funds by Zhewen Hu, who invested $3.8 million worth of eth in the Stox ICO that raised about $34 million in 2017. Hogeg’s lawyer has responded to the claim filed in an Israeli court, stating that the ICO whitepaper is of “a descriptive nature only and not binding.” “A whitepaper does not constitute a prospectus or offering document,” Hogeg’s lawyer said. Hu claims only $5 million of that $34 million was spent on Stox, a prediction market similar to Augur or Gnosis. The rest, the claimant says, was spent by Hogeg on other ICOs, like that of Telegram. Hogeg is further being sued in another case where 17 claimants say they are shareholders of invest.com.

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Stox ICO founder, Moshe Hogeg (pictured), has been sued for allegedly misappropriating funds by Zhewen Hu, who invested $3.8 million worth of eth in the Stox ICO that raised about $34 million in 2017.

Hu claims only $5 million of that $34 million was spent on Stox, a prediction market similar to Augur or Gnosis. The rest, the claimant says, was spent by Hogeg on other ICOs, like that of Telegram.

Moreover, Hu claims Hogeg sold his own Stox token prior to the earliest day he said he would sell them, so lowering the token value for other investors.

Stox has fallen in price from about $2.50 in August 2017, when it was tweeted out by the world famous footballer Luis Suarez, to now just one cent, with its market cap likewise down from $76 million to now under $1 million.

Stox price action, Feb 2019.

Hogeg’s lawyer has responded to the claim filed in...

Read the full article @ TrustNodes