Israeli police arrested eight suspects in a cryptocurrency fraud scheme after raiding their homes and seizing evidence. One of the suspects is Moshe Hogeg, a well-known owner of the first football team, the Beitar Jerusalem Football Club.
8 people arrested in connection with crypto fraud scheme in Israel
Israeli police on Thursday arrested eight suspects who allegedly stole tens of millions of shekels in a cryptocurrency fraud scheme.
The arrests came after agents from the Lahav 433 anti-corruption police unit raided the homes and offices of the suspects. They gathered evidence and seized material related to the investigation. The investigation lasted several months and exposed suspicions of money laundering and tax offenses, police said.
One of the suspects is Moshe Hogeg, owner of Beitar Jerusalem Football Club, an Israeli professional football club that plays in the Israeli Premier League.
Police explained that the suspects had exploited a cryptocurrency fraud scheme “systematically” over an extended period of time. Noting that they defrauded investors in several crypto projects, police said:
Each has pocketed millions of shekels while making false presentations to potential investors to invest in seemingly profitable companies.
In addition to the cryptocurrency fraud, police said Hogeg is suspected of committing sex crimes. Hogeg denied both allegations.
Hogeg and several others were sued in May by former employees of an Israeli venture capital fund who claimed that three of Israel’s largest initial coin offerings (ICOs) in 2017 and 2018 were pure scams. The three ICOs, launched by Sirin Labs, Stx Technologies Ltd. (Stox) and Leadcoin, collectively raised $ 250 million from investors around the world.
Lawyers Moshe Mazor and Amit Hadad representing Hogeg said Thursday that his client “vehemently denies the suspicions against him and fully cooperates with investigators.” They added:
We are sure that at the end of the investigation it will become clear that there is no basis for the allegations against him.
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