“Whitepaper confers no legal binding,” according to a lawyer to Moshe Hogeg, an Israeli crypto entrepreneur. This was reported by The Times of Israel recently.
Lawsuit Against Stox and Its Founder
A lawsuit was filed against Stox and its founder, Moshe Hogeg in January. Chinese investor Zhewen Hu filed the lawsuit of $4.6 million. Hu claims to have invested the total amount of $3.8 million worth of Ethereum in an open source Ethereum-based prediction market platform.
The plaintiff stated that there was an anticipation that the successful development of the Stox prediction market platform would boost the value of the native currency of the platform. However, the contrast has been the case. Also, the plaintiff stated that it was only $5 million of the total sum of the $34 million that was raised was invested in Stox.
Further, Hu stated that the plaintiff invested the fund raised in other initial coin offerings such as messaging app, Telegram’s ICO, which was conducted in April 2018.
Whitepaper Not Legally Binding
In defence of his client, Hogeg’s lawyer responded that the Stox whitepaper is descriptive nature only and not binding. It was further noted that the document did not present any obligatory program and therefore confers no legal responsibility on its users.
Also, the Times of Israel revealed that Hogeg denied the allegation of any wrongdoing and stated that the lawsuit is an extortion attempt. So also, the token was stated not to be a security and does not grant any ownership of right in the company while citing the firm’s contribution terms.
Also, Hogeg also stated that STX Technologies Limited is a Gibraltar-based entity and thinks that the Israeli is not the appropriate place for the case to proceed.
Hogeg Extravagant Spendings and Stox ICO
As reported, Hogeg has become prominent in recent time for his extravagant spendings. Hogeg has spent several million on projects within the last few months. He bought Beitar Jerusalem, one of Israel’s top soccer clubs, for $7.2 million recently. He also made a donation of $1.9 million to Tel Aviv University to establish the Hogeg Institute for Blockchain Applications.
Meanwhile, the Stox ICO was promoted by a professional boxer, Floyd Mayweather Jr. The boxer faced charges from the U.S. SEC for unlawful promotion which attracted a fine.