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

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg

Research

In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.

article-image

The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally

article-image

While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders

article-image

Trading volumes totalled $154 billion in Q4, including $125 billion in institutional volume

article-image

DeFi on Bitcoin is all the rage right now and Stacks is positioned to benefit

article-image

The Boston Globe reports that lawyer John Deaton is weighing a possible bid

article-image

Ethereum’s Dencun upgrade will enable Uniswap v4 to optimize smart contracts for complex functionality