Sirin Labs founder arrested in Israel

Moshe Hogeg, founder of ICO startups Sirin Labs, Stx Technologies Limited (Stox) and Leadcoin, was arrested in Israel on suspicion of cryptocurrency fraud, money laundering and sex crimes. This was reported by Haaretz.

The entrepreneur also owns one of the country's leading soccer clubs, Beitar (Jerusalem).

Seven other suspects were arrested along with him, most of whom are Hogeg's former or current partners and employees.

All eight are charged with embezzlement of millions of shekels and conspiracy to mislead investors in cryptocurrency projects. According to a police spokesman, the suspects knew the projects would never come to fruition.

Law enforcers searched the offices of the soccer club for evidence of the use of illegally obtained funds.

Regarding Hogeg's alleged sex crimes, police have been investigating for months and continue to collect evidence. The activities he allegedly organized involved minors.

Law enforcement officials expect that making Hogeg's name and the charges public will encourage more victims to come forward.

The charges against the businessman include criminal conspiracy, aggravated fraud, willful concealment of income, document fraud and committing drug offenses.

The court arrested Hogeg and the other suspects, extending their custody until Nov. 24.

Hogeg's attorneys said he "categorically denies the charges and is cooperating fully with the investigation." They added that the investigation will show the groundlessness of the suspicions.

As a reminder, Hogeg was sued in 2019 for misusing more than $4.6 million from investors in the Stox ICO platform.

In 2021, investors in the entrepreneur's ICO projects went to court to recover $16.1 million from him.