Tel Aviv Court Gives Moshe Hogeg a Timeframe of 30 Days To Settle $4 Million ICO-Related Lawsuit
Moshe Hegog, the chairman and co-founder of Singulariteam, an important VC fund in Israel, has been sentenced to settle a $4.2 million USD lawsuit with a Chinese investor in 30 days.
According to local media outlets, the investor won a $4.2 million USD lawsuit against Hegog as he misappropriated funds from the Stox Technologies’ Initial Coin Offering (ICO).
Hegog is a very wealthy man who also is the CEO of Sirin Labs, a very prominent company who went out to create the first blockchain-based smartphone in the market back in 2017. He is also the owner of Beitar Jerusalem, a local soccer club in the country.
Lawsuit Will Be For Misappropriation Of ICO’s Money
Judge Michal Amit-Anisman, from a justice court in Tel Aviv, has decided that Moshe Hogeg would have 30 days to reach out to Huwan Hugh, the Chinese investor, and pay what he owes him for the lawsuit.
The legal battle started in January, when Hugh filed the multi-dollar lawsuit, as he deemed that the entrepreneur has misappropriated the money from his investment.
Not only Hegog was targeted by the lawsuit, but also Yaron Shalem, which is currently the chief financial officer of Singulariteam and in Stox Technologies. Stox Technologies, as a company, was the last target of the lawsuit won by the Chinese investor.
Basically, the two men and the company were being accused of using the money which was raised from the ICO not in the benefit of the investors who spent their money at the fundraiser but on their own benefit.
A Third Party Mediator Was Recommended By the Judge
According to Globes, a local media outlet of Tel Aviv, the judgment session was long and hard to settle. The judge was only able to make the two parties agree on the situation after three hours of discussion, most of it fruitless.
In fact, at the end of the session, judge Amit-Anisman has affirmed that any requests would not be taken by the court and that the parties should seek a mediator in order to continue the discussions if they wished. Meira Harel was recommended by the judge as he was an expert with cryptos, in the opinion of the judge.
Also, an extension to the period of 30 days could be requested by each party and they could petition the court with the request at the end of the period.
Cases like this raise some important question about the crypto world. As the technology and the business model is all still very new and fresh, the law often has difficulties to regulate these markets and to reach agreements. According to judge Amit-Anisman, this raises some serious questions and neither Israel nor the regulators in the world are still ready to answer them.