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.

Police Seek Charges in $290 Million Crypto Crime

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.

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.

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.

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.

In the long list of crimes attributed to Hogeg, financial fraud, forgery of corporate documents, money laundering Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Read this Term, fraud, tax violations, and sexual offenses were all included in the list. The accused was alleged to have repeatedly violated women's privacy.

Hogeg himself denies all allegations and claims that the police brutally treated him during questioning to extract his testimony.

Sam Bankman-Fried of the First Cryptocurrency Bubble?

The comparison of Moshe Hogeg to Sam Bankman-Fried (SBF) of the first cryptocurrency bubble is not far from the truth. SBF was the owner of the now-defunct FTX exchange, 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.

With Hogeg, it was similar. In 2017, he participated in meetings with the Israeli Finance Minister to promote blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term technology and cryptocurrencies. One of his cryptocurrency projects, as part of an ICO, raised $100 million within 24 hours, and Hogeg himself posed for photos with Leo Messi, one of the most popular football players in the world.

The first among many lawsuits against Hogeg began in 2019. At that time, two American investors sued him, but a few months later, their case was annulled without reason. That same year, an investor from China also sued Hogeg, claiming he was running a financial pyramid, and demanded $5 million in compensation.

It was only at the end of 2021 that the media began to report that Hogeg was among the suspects in an investigation conducted by Israeli police concerning a cryptocurrency crime. After two years, the police now appear ready to press charges against him.