A petition filed in court by 17 shareholders of IDC Investdotcom Holding has led to the Tel Aviv court appointing a temporary liquidator. The 17 had filed a petition alleging that Moshe Hogeg director of DC Investdotcom Holding has embezzled funds raised from two ICOs resulting to the company becoming insolvent.
According to the petition Moshe Hogeg Israel, leading investor in the virtual currency sector took funds raised from two ICOs and used them for personal gain. The 17 were shareholders of now-defunct AnyOption Company which was associated with Hogeg. The latter was closed after the government set plans in motion to ban binary sector would have made its operation obsolete. Through merging AnyOption and Invest.com shareholders of AnyOption become shareholders of Invest.com leading to the 17 becoming part of IDC Investdotcom Holding. The merger took place in June but later on changes were made on February this year leading to the shareholders being allocated USD3.5 million in Invest.com. The latter is also inclusive of Stox shares a virtual currency firm that was launched later on. Hogeg actions of not sharing revenue from the ICOs is what led to the 17 filling the liquidation petition. Furthermore, they are accusing Hogeg of bringing down a once profitable company to now a firm not even been able to cater to its operational costs.
Funds in Question
According to the allegations, Hogeg embezzled US34 million raised in a crowd fundraising event held in August to sale Stox stocks. The funds were from the sale of ETH, but later on, the value of the ETH rose to US$60. Further on, Stox held another successful ICO in February where US$33 million was raised.
In question are recent purchases made by Hogeg where he used millions of dollars to acquire property under his name. In June Hogeg bought a piece of land in a Tel Aviv suburb from Ilan Ben-Dov a businessman. The land was worth $19 million, and Hogeg made payments in both Bitcoin and cash. Later on in August Hogeg become the owner of Israel top soccer team Beitar Jerusalem where he had to part with $7.2 million to close the deal. On his final spending spree, Hogeg donated $1.9 million to Tel Aviv University. The funds were to set plans in motion to create a blockchain Institute at the Tel Aviv Coller School of Management and was to be named Hogeg Institute for Blockchain Applications in his honor.