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Build new markets, make predictions, trade with peers and make profit on one decentralised platform. Established in 2017, Israel. CEO/founders - Yossi Peretz.

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Floyd Mayweather-Backed ICO Stox Sued For Misappropriating $30 Million

A Chinese investor has sued Stox.com and its owner Moshe Hogeg, for allegedly misappropriating funds raised during an ICO. Boxer Floyd Mayweather famously backed the Stox ICO, and has subsequently been in trouble with the SEC for other crypto-endorsements. Stox Of Ethereum According to the NIS 17 million ($4.6m) lawsuit, the investor sunk $3.8m worth of Ethereum into the ICO. This was based on promises made in the white-paper, which claimed that the company would invest $30m of funds raised into developing its prediction market platform. The Mayweather-endorsed ICO, held in August 2017, raised $34m, but the lawsuit claims that only $5m of this was invested into the company. Hogeg invested the rest, it claims, in other ICOs such as that of Telegram. In addition, the investor accuses Hogeg of selling his own Stox tokens 00 before he promised, thus devaluing all tokens. Spending Spree One of Israel’s highest-profile crypto-entrepreneurs, Hogeg also faces charges of misappropriating funds in another company he controls. He denies both the charges, which follow a mightily impressive spending spree last year. In June 2018 he reportedly bought $19m worth of land in a wealthy suburb of Tel Aviv. Two months later, he splashed out $7.2m on Beitar Jerusalem, one of Israel’s top football clubs. Not content with this (and perhaps seeking some lasting recognition of his ‘greatness’), he donated $1.9m to Tel Aviv University. Well, he donated it to establish the ‘Hogeg Institute for Blockchain Applications.’ (May)Weather The Storm The Stox ICO marked Mayweather’s first foray into crypto-promotion. He later endorsed a further two ICOs, netting him $300,000. Sadly, one of these, Centra Tech, was later found by the SEC to be a scam, and the founders charged with fraud. This shone a light on Mayweather’s own involvement, and the commission charged both Mayweather and DJ Khaled for failing to disclose that their endorsements of the ICO were paid promotions. Mayweather settled the charges by agreeing to pay $300,000 in disgorgement, $300,000 in penalties, plus interest, and receiving a 3-year ban from future securities promotions. Unfortunately for Mayweather, his woes do not end there. His name also appears in a class-action lawsuit against Centra Tech, its founders, and celebrity endorsers. He must be hoping upon hope that he can remain uninvolved in this latest suit. Images courtesy of Shutterstock, Bitcoinist archives The post Floyd Mayweather-Backed ICO Stox Sued For Misappropriating $30 Million appeared first on Bitcoinist.com.
Bitcoinist

Blockchain Startup Stox and Founder Sued for $4.6 Million Over Alleged Fraud

Blockchain Startup Stox and Founder Sued for $4.6 Million Over Alleged Fraud A Chinese investor has sued a prominent Israeli crypto entrepreneur and his blockchain firm Stox (STX) over alleged fraud, English-language newspaper The Times of Israel reports Jan. 25. The investor, Zhewen Hu, is suing Stox and its founder for $4.6 million, according to […] Cet article Blockchain Startup Stox and Founder Sued for $4.6 Million Over Alleged Fraud est apparu en premier sur Bitcoin Central.
Bitcoin Central

Blockchain Predictions Market Stox and Founder Sued for $4.6 Million

Blockchain Predictions Market Stox and Founder Sued for $4.6 Million Israel-based blockchain prediction market platform Stox and its founder Moshe Hogeg are reportedly being sued by a Chinese investor for over $4.6 million over alleged fraud. As reported in The Times of Israel on Friday, investor Zhewen Hu claims in a lawsuit, filed in the Tel Aviv District Court… The post Blockchain Predictions Market Stox and Founder Sued for $4.6 Million appeared first on Altcoin Today.
Altcoin Today

Stox Founder Moshe Hogeg Faces $5 Million Lawsuit Following Claims of ICO Being a Ponzi Scheme

Stox is a company that was launched by Moshe Hogeg in 2013 as a subsidiary of Invest.com, another business of Hogeg’s. Despite already being life, Hogeg chose to wait until last year to officially launch an initial coin offering (ICO), which many people may remember for its promotion by boxer Floyd Mayweather. As a result of the ICO, the company managed to bring in over $30 million in funding. However, with this substantial funding, many people have been perpetuating a realistic rumor that Stox is simply an exit scam and nothing more. Details of these allegations originally were found within Reddit before it was eventually picked up by major news outlets. Part of the “proof” provided was a list of wallet addresses that showed irregularities in the transactions. When this rumor first started circulating, Stox had released a statement, saying, “This anonymous source re-published a message that was published and already answered more than a year ago (26.9.2017). This source copied the message and shouted “Exit scam” without having any cause whatsoever… the created tokens were actually tokens purchased by private investors before the public sale. Money taken was converted to Ethereum. This was purchased by Hogeg. Hogeg used this money to purchase additional STX following the company’s public sale. A second rumor sprung up as well, saying that the company had let go of the staff at the platform and that their office had been closed as well. Stox responded again, crediting the loss of staff was due to a falling out with a partnership deal that involved themselves and Chromologic. Then, they were gone, off on their way to “operation in Europe.” At this point, there is no evidence to say if the project is actually an exit scam, but it was originally meant as a platform that predicts the outcome of the market to help users earn more money. The website itself offers the prediction of Bitcoin prices as an example, which does not exactly sound like binary options. Perhaps that is the reason that a Chinese investor is suing him. Zhewen Hu, the investor, has accused Hogeg of running a Ponzi scheme, which he chose to invest in before this information became known. In an Israeli court, Hu is demanding NIS 17 million ($4.63 million) in compensation, but Hogeg responded to the lawsuit by saying that he will “not give in to despicable extortion attempts.” He stood his ground, adding, “I am the force behind the company and will have the final say.” In the lawsuit, Hu also accuses of Hogeg and other players in the Stox platform of keeping the money and departing from their work on the brand. Even with a whitepaper and business plan in place, Hu defends his own stance, saying that those things were just efforts to convince consumers to invest. Even though there is no evidence yet of an exit scam, there’s some merit to the claims that Hu stated. A local outlet revealed that the company was planned to be launched in conjunction with Invest.com, according to the initial whitepaper. At the time, Hogeg said that the website was home to three million users, exceeding $50 million in revenue in 2016, all of which would be issued a crypto wallet to use with Stox. None of these plans ever came to fruition. In fact, right now, Invest.com is just a landing page, and the Android Google Play store shows less than 1,000 downloads. Right now, there are advertisements for sports betting, but there is no certainty of if this function is even active.
Bitcoin Exchange Guide

Top Crypto Entrepreneur In Israel, Moshe Hogeg, Allegedly Embezzled ICO Funds

Moshe Hogeg, A Leading Israeli Crypto Entrepreneur, Allegedly Embezzled ICO Funds Israel is home to Moshe Hogeg, which is one of the most successful and prominent entrepreneurs in the cryptocurrency industry. However, he seems to have gotten in hot water recently with one of his companies recently, since he’s the subject of an embezzlement case that accused him of stealing funds from two Initial Coin Offerings. The 17 shareholders of IDC Investdotcom Holdings, better known as Invest.com, were the petitioners in this case, requesting to liquidate their business. A Tel Aviv court appointed a liquidator for now. This same group of shareholders formerly held stocks for AnyOption, a former binary options firm. The case discusses how the two industries cases are closely related, though the binary options industry is no longer valid in Israel. According to the petition filed, Invest.com and AnyOption were merged in June 2017 after Israel’s government banned the binary options sector. The agreement was amended in February, giving $3.5 million and shares of Stox to the former shareholders of AnyOption. Stox is a cryptocurrency form. One of the listed ICOs was performed in August 2017 for Stox’s fundraising project, bringing in $34 million worth of ETH at the time. However, the market went up, and this valuation rose to $60 million. To help fund a project named Zodiac, which was a part of Stox, the company held another ICO in February this year. At the time, the project raised $33 million, which is included in the petition well. The complaint says that the amount contributed never went to the progress of Invest.com. Instead, the shareholders believe that Hogeg embezzled the funds, making Invest.com insolvent. However, Invest.com has denied this allegation.
Bitcoin Exchange Guide

Tel Aviv-Based Ethereum-Built Stox Refutes Accusations Of STX Crypto Token Exit Scam

Stox, was recently in the news because of allegations of an exit scam carried out by SIRIN Labs’ founder Moshe Hogeg. The company has actively refuted this accusation, claiming that it’s work of disgruntled elements looking to spread some fear, uncertainty and doubt. The claims of an exit scam were initially published in a Reddit thread and spread to Telegram channels, then picked up by major outlets, including IOTA’s founder, Dominik Schiener’s tweet about how he’s always thought that SIRIN’s founder, Moshe Hogeg was a shady person and scammer. According to the tweet, Dominik says, I always suspected @moshehogeg from @SIRINLABS to be a shameless scammer. Now we finally have proof: https://t.co/JWJRqISry8. Wonder how much money he stole from Sirin and other projects he was involved in. He and his companies give the entire ecosystem a bad reputation. — Dominik Schiener (@DomSchiener) November 11, 2018 While many might have taken this as a comment from an expert in the industry, it is important to note that SIRIN Labs had a previous arrangement to use IOTA’s blockchain for its soon to be released phone, but pulled out of the arrangement and chose the ethereum blockchain. How The Accusations Started The text used as “evidence” on the Reddit thread had a list of wallet addresses that indicated purported irregularities in the transfer of STX tokens. These tokens which were vested were seemingly withdrawn from the receiving wallets that they were initially in through the use of the revoke function and transferred to a “strategic partnership address”, after which it was then traded on an exchange. The subtext being that Hogeg sold these tokens –more specifically, his tokens. In response to this, Stox released a statement saying, “This anonymous source re-published a message that was published and already answered more than a year ago (26.9.2017). This source copied the message and shouted “Exit scam” without having any cause whatsoever… the created tokens were actually tokens purchased by private investors before the public sale. Money taken was converted to Ethereum. This was purchased by Hogeg. Hogeg used this money to purchase additional STX following the company’s public sale.” The company continued, “Additional Stox tokens were purchased by Moshe as he is a huge fan of Stox who strongly believes in what we are doing as he has said many times. There has been no unethical behavior, nor any dumping of Stox token.” An independent investigation of the aforementioned statements actually confirmed this statement to be true. And in response to the latest allegations the company stated, “These are private transactions conducted by Moshe Hogeg on the secondary markets. These transactions are not related to his involvement in the company at all and were concluded independently.” As for the issue of revoked tokens, Stox clearly stated that admins were the only ones who could do that and only used in certain instances: “[it]…was used right after the ICO in order to fix vested amounts in invest.com’s and Stox’s team wallets. The revoked tokens were transferred back to the vesting contract, and then reallocated according to both the terms mentioned in the white paper, and also in accordance with agreements with our strategic partners and advisers… From time to time the revoke function is used to adjust vesting terms according to new or ended partnerships. For example, when an employee leaves our employ, Stox revokes his vested tokens and return them to the vesting contract.” The Second Rumor Sparking FUD That same text shared on reddit stated that the company’s CEO, Yossi Peretz has moved on from the company, partners like Commologic and Amazix have pulled out of earlier arrangements and partnerships, and that the company has let go of all staff, closing their office in the process. It’s true that the first and second rumors are true as seen in Peretz’s post on Medium, “My Journey with Commologic & Stox has been one of the best working experiences. As the CEO of Commologic … we have assisted building the Stox platform…Due to the decision of STX Technologies to terminate the service contract with Commologic, Commologic will no longer continue its business activities and I have decided that it is now time for me to pursue a new venture and take my career in a different direction.” Shortly after Peretz’s statement, the company released a statement saying that it will now be managed by Gibraltar based STX Technologies Ltd. The company also confirmed that it had ended the partnership between it and Amazix: “Stox terminated the contract with AmaZix in October because the parties could not reach agreement on the commercial terms. Stox is currently in talks with AmaZix with the aim of re-establishing the relationship and renewing the contract.” The third claim of the company downsizing is because of the conclusion of the partnership deal between it and Chromologic. Their statement reads: “In this regard we have moved development an operation to Europe…We say goodbye to the Israeli team that has been with us from the start, as part of the company’s decision to move finally towards a more decentralized platform.”
Bitcoin Exchange Guide

Cryptocurrency Prediction Marketplace Stox Debunks Exit Scam Rumors

Stox (STX ),  a distributed ledger technology (DLT ) based prediction platform that allows users to predict the outcome of events in various ecosystems including the cryptocurrency markets, sports, tech, and others, has responded to rumors making the rounds that its orchestrating an exit scam, according to a Finance Magnates report  on November 12, 2018.     Stox (STX) Not Running...Read More. The post by Ogwu Osaemezu Emmanuel appeared first on BTCManager, Bitcoin, Blockchain & Cryptocurrency News
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New York Attorney General’s Office Accuses Bitfinex Of Covering $850 Million Losses Using Tether Funds

If you are our BitcoinExchangeGuide’s regular reader. You should already know about the shady connection between Bitfinex and Tether. This Thursday, a document by the New York Attorney General’s (NYAG) office revealed that iFinex, the company behind both Tether (USDT) and Bitcoin exchange Bitfinex, is being sued. In the press release, the attorney general Letitia […]
Bitcoin Exchange Guide

New York AG’s court filings written in ‘bad faith’ and ‘riddled with false assertions,’ says Bitfinex’s rebuttal

Bitcoin and Tether have been closely related since time immemorial, but the recent string of events pushed the price of Bitcoin down by 9% in about 3 hours. This has caused a domino effect, causing the price of other altcoins to fall as well. The New York State Attorney General is suing Bitfinex and the closely affiliated firm, Tether, responsible for the infamous stablecoin, USDT. According to Yahoo, NY AG released a 23-page document which suggested that the AG has reason to believe that there might be a fraud being carried out by the two companies in cahoots with each other. Yahoo stated that among other things, Tether and Bitfinex are engaged in, “undisclosed, conflicted transactions to cover Bitfinex’s losses, approximately $850 million, by transferring money out of tether reserve funds.” Tether and Bitfinex aren’t completely unaware of their problems in trying to retain banks for their business and the allegations of Bitcoin’s 2017 pump was fueled by Tether and Bitfinex. Bitcoin’s prices took a nasty fall after the news broke out. However, the prices have recuperated partially since then. Bitfinex too did not waste time with its rebuttal to the New York AG’s charges. Bitfinex’s rebuttal stated that New York’s AG released the order without giving the parties proper “notice or hearing” and that the Attorney General was attempting to “compel Bitfinex and Tether to provide certain documents and seeking certain injunctive relief.” The same rebuttal was released by Tether. The blog further stated, “The New York Attorney General’s court filings were written in bad faith and are riddled with false assertions, including as to a purported $850 million “loss” at Crypto Capital. On the contrary, we have been informed that these Crypto Capital amounts are not lost but have been, in fact, seized and safeguarded.” Bitfinex stressed that they were actively exercising their rights to get the stated funds released. It also added that the New York State Attorney General’s office seemed to be intent on undermining Bitfinex’s efforts, to the detriment of Bitfinex’s customers. The post New York AG’s court filings written in ‘bad faith’ and ‘riddled with false assertions,’ says Bitfinex’s rebuttal appeared first on AMBCrypto.
AMBCrypto

How Crypto Markets Are Reacting to the Tether-Bitfinex Allegations

The cryptocurrency markets endured a loss of as much as $10 billion around 21:00 UTC on Thursday, following allegations that the Bitfinex exchange covered up an $850 million shortfall using the U.S. dollar-pegged Tether (USDT) stablecoin. The New York Attorney General’s office alleged in a statement on Thursday that Bitfinex lost $850 million and used customer and […]
CoinDesk

There are serious, existential, risks to Bitfinex and Tether with the information out today. Here's a primer on what's going on.

Bitfinex and Tether may be insolvent. Bitfinex and Tether and owned and operated by the same people. They are separate entities, but they share significant common personnel. Today the Assistant NYAG filed a motion to try and prevent Bitfinex from taking part in any transaction between it and Tether. Here's the raw document: https://iapps.courts.state.ny.us/fbem/DocumentDisplayServlet?documentId=vIexA1b0spKOnK_PLUS_ZUGTJ3A==&system=prod Reporting on the above filing is available from the WSJ: https://www.wsj.com/articles/bitfinex-used-tether-reserves-to-mask-missing-850-million-probe-finds-11556227031?mod=rsswn What is going on? The filing lays out that Bitfinex has lost access to $850 million dollars of corporate and depositor money to a company called Crypto Capital. Bitfinex believes that those funds may have been stolen and that Crypto Capital has been engaged in defrauding Bitfinex. Bitfinex - in order to pay out withdrawals has been running out of cash. Bitfinex has engaged in multiple transactions with Tether of questionable nature. It has obtained lines of credit and fiat currency (ostensibly to pay out fiat withdrawals - this is speculation but a logical conclusion based on the filing and its context) It also appears to have sold equity in itself to Tether for access to Tether's reserves. There is still a lot of missing information, but it seems clear that Bitfinex has lost $850 million dollars in some fashion and attempted to fulfill customer withdrawal requests from funds from Tether reserves. Tether has recently updated its terms: “Every tether is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities.” That other affiliated entity is Bitfinex. Tether now no longer holds all currency reserves - it now has extended a line of credit to Bitfinex - to the tune of $700 million, and may also hold shares in Bitfinex. If Bitfinex has lost $850 million, then the equity that Tether holds in Bitfinex may be encumbered or worthless. If Bitfinex has taken out loans or drawn on its line of credit, those funds may never be returned. There is now clear evidence that tether is at serious risk of of not being backed at a 1:1 ratio. What does this mean for you? Tether now is EXTREMELY risky to hold. There is clear evidence that Bitfinex has taken money from Tether, and its ability to repay it is in serious doubt. If Bitfinex truly has lost $850 million dollars, it may be insolvent. If Tether no longer has all the money backing it - because it owns Bitfinex assets, which are of questionable value, it's value will plummet, and all assets denominated in tether will appreciate. There are lessons from Mt. Gox here. Mt. Gox did not just happen in one day. It played out over multiple months, the entire time with assurances that things are fine. Things were not fine - at all. The filing released today is damning. It is linked above, read it for yourself. The evidence presented in there is clear that something is terribly wrong at Bitfinex. It is not a certainty that Bitfinex is insolvent - but the filing lays out items that are terrifying to anyone holding significant financial assets related to Bitfinex and Tether entities. Plain and simple: Depositors, and users of Tether are at serious risk of taking losses. Exchanges are the largest holders of Tethers, and when/if it becomes clear that tethers are no longer worth 1:1 they will be forced to freeze all tether assets until the situation can be straightened out. This process will potentially take years, into a decade or more. Mt. Gox funds are still not distributed to this day, over 5 years ago. The sheer complexity of a Bitfinex/Tether insolvency will play out over multiple jurisdictions and will take an eternity to sort out. Again, read the primary documents filed by the AAGNY and decide for yourself if it is likely that Tether and Bitfinex are completely safe. Thousands of us lost our funds in Mt. Gox - and we've paid dearly. There are serious concerns if you are a Bitfinex customer, or if you hold USDT Tether on other exchanges.
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