Israeli police say Moshe Hogeg engaged in $290M crypto fraud, recommend charges

Moshe Hogeg used to own an Israeli soccer team, which he put up for sale in 2021 shortly before his initial arrest

article-image

RaffMaster/Shutterstock modified by Blockworks

share

Following more than two years of investigation, Israeli police told prosecutors that they should charge Moshe Hogeg, a businessman behind a number of crypto startups over the years, for his role in an alleged $290 million crypto scam. 

The police claim that Hogeg raised the inordinate sum of money from Israelis and investors across the world with the pretense of funding four separate crypto projects, the Times of Israel reported Wednesday.

Instead of doing that, Hogeg lined his own pockets during 2017 and 2018, the police say. 

Hogeg was involved in a project with blockchain smartphone startup Sirin Labs. While Sirin Labs is still afloat and selling phones, Hogeg was sued by Foxconn for nearly $6 million in 2020 for not paying manufacturing bills. 

Police interviewed around 180 people who were involved. Their dozens of searches yielded 900 pieces of evidence, money and property, the Times of Israel reported. 

Following their investigation, police have leveled multiple accusations against Hogeg. These include aggravated fraud, unauthorized theft, falsification of corporate documents, forgery, money laundering, and tax violations, among others.

Hogeg’s troubles with Israeli authorities began in 2021 when he was arrested after police suspected his involvement in fraud and sex crimes. Hogeg, who was released into house arrest a month later, denies all the accusations against him.

Hogeg’s most recent involvement in the crypto space appears to be with Tomi, a Web3 company focused on decentralization and free speech. Hogeg identifies himself as a cofounder of Tomi, and in a post on X from July, added that he would “remain an advisor and investor.”


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

MON - WED, MARCH 18 - 20, 2024

Digital Asset Summit (DAS) is returning March 2024. What you can expect: And more! Don’t miss out on the opportunity to be in the room when the future of crypto is decided. Join us and help shape the future of our […]

recent research

Research report - cover graphics-2.jpg

Research

Base has doubled-down on its commitment to the Superchain vision, has shown early signs of success with nearly $400M in TVL, and has become home to novel dapps such as friend.tech which has seen significant traction.

article-image

Blockchain is a “natural fit” in games based on open economies and user-generated content, says Wyatt

article-image

Their current stance is a half-baked attempt that could stifle innovation and burden an emerging industry

article-image

Maker’s DeFi-focused “subDAO” passed a proposal activating a lending market for DAI on the Gnosis Chain

article-image

Certain creditors could be repaid sooner, with one hedge fund exec telling Blockworks it expects a payout by the end of the year

article-image

Busan is South Korea’s second largest city with a population around 3.4 million

article-image

Cyprus granted eToro crypto registration, setting the groundwork for the company to operate crypto services post-MiCa rollout