Federal Court Lawsuit Says Money From Stox Token Sale Was Used To Buy Soccer Team
A new federal court lawsuit against Stox Technologies in Seattle claims that the proceeds from the token sale of Stox tokens were used to buy a soccer team from Israel and other outside investments. This would be a clear breach of the law, as the money should be used on the project instead.
The lawsuit claims that the execs from Stox Technologies defrauded its investors by lying and using the money in non-related activities. The plaintiff claims that the tokens were purchased reliant on statements that affirmed that the money would be used to develop the project, but they were not used for that.
Investors from all over the world were allegedly defrauded out of millions of dollars in this case, as a very high amount of money was raised.
Moshe Hogeg, the owner of Stox Technologies, is being accused of funding several expensive purchases with the money, including paying around $19 million USD to buy land in the capital of Israel, Tel Aviv, and $7.2 million to pay for Beitar Jerusalem, a local soccer team.
Will this lawsuit hurt Stox Technologies? The Block seems to think so. In a recent article, an analyst from the crypto media outlet affirmed that there is “a lot of smoke” in the lawsuit, but that pleading problems aside, there is a chance that the plaintiff may win the case against the company because it has “an angle”.