Israeli police recommend charges against businessman Moshe Hogeg
Date: 2023-08-24 Author: Karina Ziganova Categories: BLOCKCHAIN, BUSINESS
Tech entrepreneur Moshe Hogeg has been accused by Israeli police of defrauding investors of $290 million in a series of cryptocurrency scams, according to Bloomberg.
Hogeg, founder and co-CEO of Sirin Labs AG, and several unnamed partners are suspected of misappropriating millions of dollars from Israeli and foreign investors raised between 2017 and 2018 for four cryptocurrency startups. These funds were used not for their intended purpose, but for personal purposes. The two-year investigation included the questioning of 180 witnesses, the collection of 900 pieces of evidence, and the confiscation of significant funds and assets.
The list of charges against Hogeg includes fraud, theft, money laundering, document forgery and tax crimes. The police sent their recommendation to Israeli prosecutors, who will ultimately decide on charges. Hogeg, who was arrested in 2021 and later released to house arrest, has not yet responded to these allegations through his lawyer.
Overclocking
However, this case against Hogeg is not an isolated incident, but part of a broader and stronger effort to combat illegal cryptocurrency activities around the world. The Federal Bureau of Investigation (FBI), for example, has significantly increased its efforts to combat the misuse of cryptocurrencies. A recent FBI seizure notice detailed numerous seizures, totaling 195 copies of major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) from various states and jurisdictions.
Recent changes in legislation indicate an increase in enforcement measures in the crypto industry. This aggressive wave of enforcement against cryptocurrency fraud has resulted in arrests or charges against former industry giants such as Sam Bankman-Fried, Alex Mashinsky, Do Kwon, and others. Moreover, the Department of Justice (DOJ) is reportedly considering charges against Binance and its CEO, Changpeng Zhao.
Cases of market manipulation and securities fraud have also come to the attention of prosecutors. Earlier this year, the SEC accused Abraham Eisenberg of stealing $116 million from the Mango Markets platform by manipulating its governance token. In addition, allegations of insider trading at OpenSea led to Nate Chastain being sentenced to three months in prison.
The SEC has also filed extensive charges against Binance and Binance.US for violating securities laws, evading US regulations, and misleading users about the accuracy of trading volume and protection against fictitious trading.
