Founder of Sirin Labs arrested in Israel on suspicion of fraud

In Israel, the founder of the Sirin Labs ICO startups Stx Technologies Limited (Stox) and Leadcoin, Moshe Hogeg, was arrested on suspicion of cryptocurrency fraud, money laundering and sex offences. Haaretz reports, Haaretz.

The entrepreneur also owns one of the country’s leading football clubs, Beitar (Jerusalem).

Seven other suspects were arrested alongside him, most of whom are former or current partners of Hogeg and his associates.

All eight are charged with misappropriation of millions of shekels and conspiracy to mislead investors in cryptocurrency projects. According to a police spokesman, the suspects knew that these projects would never be realised.

Law enforcement conducted searches at the football club’s offices in search of evidence of the use of illegally obtained funds.

The police have been investigating the alleged sex-related crimes by Hogeg for several months and are continuing to gather evidence. It is alleged that under his organisation, underage participants attended events.

Authorities hope that the disclosure of Hogeg’s name and the charges will prompt more victims to come forward.

Among the charges against the entrepreneur are criminal conspiracy, aggravated fraud, intentional concealment of income, document manipulation and drug-related offences.

The court remanded Hogeg and the other suspects in custody, extending the detention period until November 24.

Hogeg’s lawyers said that he “categorically denies the charges and cooperates fully with the investigation.” They added that the investigation will show the allegations to be unfounded.

In 2019, Hogeg faced a suit for the improper use of more than $4.6 million raised from investors during the Stox ICO.

In 2021, investors in the entrepreneur’s ICO projects filed a lawsuit, to recover $16.1 million.

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