Employees of Moshe Hogeg — one of the most well-known and successful crypto players in Israel — have accused the entrepreneur of running a series of scams, reports the Times of Israel.
Staff Roee Brocial and Eran Okashi claimed they were convinced to bring on friends and family as investors in three of Hogeg’s crypto projects, only to have the rug pulled out from under them later.
The employees are currently on a paid leave of absence. Hogeg told an Israeli sports media outlet the lawsuit is simply an attempt to extort him.
Brocial and Okashi alleged the $15,000-per-month penthouse suites Hogeg leveraged as headquarters for his crypto companies Sirin Labs, Leadcoin, and STOX, were “brothels” for partying and drug-fueled escapades — or “executive pleasure apartments.”
Investors in Hogeg’s coins should’ve just bought Bitcoin
Meanwhile, Hogeg’s blockchain projects — from Sirin Labs (which sold phones infused with crypto wallet) to Leadcoin (“the future of web marketing”) — have all seemingly failed miserably.
The native crypto of Sirin Labs’ ecosystem SRN is down 99.9% from its peak. Leadcoin (LDC), a token pitched to help businesses find and share leads is down 99.8%, and prediction market crypto STOX is down 99.2%.
LDC has been delisted from almost every crypto exchange that supported it and is now considered entirely defunct.
The only platform still allowing LDC trade is Israeli exchange Bancor, in which Hogeg reportedly served as an advisor and investor.
Simultaneously, a factory owner who helped manufacture Sirin Labs’ phone is suing Hogeg for $5 million over unpaid bills, noted CoinDesk.
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