The Fall of Moshe Hogeg: Israeli Mogul Accused of $290 Million Crypto Fraud

<p>After more
than two years since the launch of an investigation into a $290 million
cryptocurrency crime, Israeli police recommended charging the leading figure
behind defrauding thousands of investors. Moshe Hogeg has been accused of
theft, money laundering, and sexual offenses, according to the Times of Israel report.</p><p>Police Seek Charges in
$290 Million Crypto Crime</p><p>Hogeg's
activity in the cryptocurrency market flourished in 2017 and 2018 when the
market began to boom with initial coin offerings (ICOs). By offering his
cryptocurrency assets to investors in Israel, the accused collected $290
million to finance four fraudulent crypto projects. </p><p>Their
implementation never succeeded, and instead, Hogeg used the accumulated fortune
to cover his own expenses. He even became the owner of the football club Beitar
Jerusalem FC.</p><p>Since the
investigation officially began in 2021, Israeli police have questioned over 180
people and gathered 900 different pieces of evidence in various countries.
Additionally, properties and cash were secured. Seven other people are also
suspected of being involved in the case.</p><p>Although
all were arrested two years ago, they were released to house arrest a month
later. Now the police have announced that the charges against Hogeg and the co-defendants have been referred for review by the prosecution.</p><p>In the long
list of crimes attributed to Hogeg, financial fraud, forgery of corporate
documents, <a href="https://www.financemagnates.com/terms/m/money-laundering/">money laundering</a>, fraud, tax violations, and sexual offenses were all included in the list. The accused was alleged to have repeatedly violated women's privacy.</p><p>Hogeg himself
denies all allegations and claims that the police brutally treated him during
questioning to extract his testimony.</p><p>Sam Bankman-Fried of the
First Cryptocurrency Bubble?</p><p>The
comparison of Moshe Hogeg to Sam Bankman-Fried (<a href="https://www.financemagnates.com/tag/sam-bankman-fried/" target="_blank" rel="follow">SBF</a>) of the first
cryptocurrency bubble is not far from the truth. <a href="https://www.financemagnates.com/cryptocurrency/sbf-and-former-executives-of-defunct-ftx-received-32-billion/" target="_blank" rel="follow">SBF was the owner of the
now-defunct FTX exchange</a>, and to this day, he owes billions of dollars to
investors and partners. However, at SBF's peak, he was considered a young
genius in the cryptocurrency market, covered by media worldwide.</p><p>With Hogeg,
it was similar. In 2017, he participated in meetings with the <a href="https://www.financemagnates.com/cryptocurrency/news/moshe-hogeg-meets-israeli-finance-minister-promote-cryptocurrencies/" target="_blank" rel="follow">Israeli Finance
Minister</a> to promote <a href="https://www.financemagnates.com/terms/b/blockchain/">blockchain</a> technology and cryptocurrencies. One of his
cryptocurrency projects, as part of an ICO, <a href="https://www.financemagnates.com/cryptocurrency/innovation/finney-project-ico-goes-0-100-million-less-24-hours/" target="_blank" rel="follow">raised $100 million within 24
hours</a>, and Hogeg himself posed for photos with Leo Messi, one of the most
popular football players in the world.</p><p>The first among many lawsuits against Hogeg began in 2019. At that time, two American
investors sued him, but a few months later,<a href="https://www.financemagnates.com/cryptocurrency/news/two-israeli-american-investors-drop-complaint-against-moshe-hogeg/" target="_blank" rel="follow"> their case was annulled</a> without
reason. That same year, an investor from China <a href="https://www.financemagnates.com/cryptocurrency/news/stox-founder-5m-lawsuit/" target="_blank" rel="follow">also sued Hogeg</a>, claiming he was
running a financial pyramid, and demanded $5 million in compensation.</p><p>It was only
at the end of 2021 that the media began to report that <a href="https://www.financemagnates.com/cryptocurrency/news/beitar-jerusalem-owner-among-the-suspects-arrested-in-crypto-fraud-bust/" target="_blank" rel="follow">Hogeg was among the
suspects</a> in an investigation conducted by Israeli police concerning a
cryptocurrency crime. After two years, the police are now ready to charge the SBF
of the first crypto bubble.</p>

This article was written by Damian Chmiel at www.financemagnates.com.