A legal dispute has arisen between shareholders in AnyOption Holdings (AOH) – formerly one of the key players in the binary options business.
According to a report by Israeli outlet Globes, Moshe Hogeg, the CEO of venture capital fund Singulariteam, filed a lawsuit in Cyprus against the former owners of AOH this Wednesday.
Hogeg, who also owns football team Beitar Jerusalem, acquired AOH in June of 2017 after legislators in Israel banned the sale and marketing of binary options.
That deal was carried out via IDC Investdotcom (IDC), a company based in Cyprus that issues cryptocurrencies and which is itself owned by IDC Israel – a holdings company based in Israel of which Hogeg is the sole director.
The lawsuit filed by Hogeg on Wednesday accuses AOH’s owners of misleading IDC and its investors.
Lawyers representing Hogeg and IDC claim that they were made to believe that AOH had holdings of $7 million in cash. But once IDC took control of the company they found its debts far exceeded the value of its cash holdings.
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“The shareholders of AOH,” said a statement by IDC’s lawyers, “cheated [IDC] with a false and tendentious representation [of the company’s holdings].”
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A day after this was filed, 17 shareholders in AOH filed a lawsuit in Israel against Hogeg and IDC.
They claim that Hogeg essentially looted the company of all its assets and is unable to make any profit with IDC. According to a statement released by AOH lawyers;
“[IDC] has no ability to finance its monthly expenses from independent sources, and requires external funding every month to pay salaries to employees.”
AOH’s shareholders claim that this state of affairs means IDC should be liquidated itself and any of its assets used to compensate for losses incurred by AOH shareholders.
This is the second time in under a week that Hogeg has been accused of fraud. On Monday, he was accused of running away with cash raised to fund Stox – a cryptocurrency he launched last year.