Crypto Israeli investor and prominent businessman Moshe Hogeg is set to face charges for his alleged involvement in a $290 million scam, according to a report by Bloomberg on Wednesday.
Over the last two years, Hogeg has been investigated by the Israeli Police for allegedly duping thousands of investors through several proposed crypto businesses.
Hogeg’s Involvement In Crypto Scam
Before entering the crypto industry, Moshe Hogeg was a renowned entrepreneur with several businesses. Among them was Mobil, a media-sharing website that drew investments from notable figures such as tennis player Serena Williams and film actor Leonardo DiCaprio.
Hogeg, the former football club Beitar Jerusalem FC owner, began his digital asset journey by launching the Alignment Blockchain Hub, a blockchain consultant firm, in 2017.
In the following years, Moshe Hogeg launched three other crypto startups Sirin Labs, Stx Technologies, and Leadcoin, generating over $250 million from investors via initial coin offerings (ICOs).
However, according to the Israeli Police investigations, Hogeg and his business associates appear to have misappropriated these funds for personal use and gratification rather than investing in the said crypto startups.
The police are making these allegations, having interviewed 180 witnesses, obtained 900 pieces of evidence, and seized funds and properties belonging to the suspects.
Moshe Hogeg and seven others were initially arrested on fraud and theft charges in 2021. However, the investor was released to house arrest one month later on a $22 million bail bond.
Two years later, the Israeli police have seemingly completed all investigations, charging Moshe Hogeg with theft, aggravated fraud, money laundering, forgery, non-registration of corporate documents, and tax violations.
In addition, the businessman has also been accused of sex crimes and constant violation of women’s privacy. The police have now submitted all evidence to Israeli prosecutors, who will conduct a review and decide whether to enact these charges.
Investment Scams Still An Issue In The Crypto Space?
In recent years, investment scams have become one of the major issues in the crypto space. According to a report by TRM Labs, investors lost over $9 billion to scams and fraud in 2022.
In March 2023, the United States Federal Bureau of Investigation (FBI) released its annual Internet Crime Report, claiming that an estimated $10 billion was lost to online scams in 2022.
According to the FBI, fraudulent investment schemes resulted in losses of about $3.31 billion in 2022. Crypto investment scams accounted for 77.6% of these figures, surging by more than 183% from $907 million in 2021 to $2.57 billion in 2022.