Chief Financial Officer of the Celsius Network, Yaron Shalem, and Moshe Hogeg, the founder of the ICO startup Sirin Labs, were among the seven people detained in Tel Aviv, Israel. CoinDesk reported this.
Thus, the Celsius Network noted that they know “about a police investigation in Israel involving an employee”. But did not specify his name or position.
Furthermore, Shalem worked as the financial director of Hogeg’s Singulariteam in 2014-2018 and joined the Celsius Network in 2021. In addition, the founder and CEO of the platform, Alex Mashinsky, was working as an advisor at Sirin Labs back in 2019.
Cryptocurrency fraud, money laundering and sexual crimes
Earlier, the Israeli police arrested Hogeg on suspicion of cryptocurrency fraud, money laundering and sexual crimes. Together with him, seven other suspects were arrested. Most of whom were former or current partners of the entrepreneur and his employees.
The court arrested Hogeg and other suspects, extending the detention period until November 24. According to a police spokesman, the suspects knew that they would never implement these projects.
Among the charges against the entrepreneur are criminal conspiracy, aggravated fraud; intentional concealment of income, fraud with documentation and the commission of drug-related crimes. Hogeg’s lawyers said that he “categorically denies the charges and is fully cooperating with the investigation”. They also added that the investigation will show the groundlessness of suspicions.
The misuse of more than $4.6 million
In 2019, Hogeg received a lawsuit for the misuse of more than $4.6 million received from investors, during the ICO of the Stox platform, even then the case concerned Shalem.
In 2021, investors of the entrepreneur’s ICO projects went to court to recover $16.1 million from him.
Recall that previously, Celsius Network has increased the volume of funds raised, following the Series B investment round to $750 million. Consequently, the firm’s valuation reached $3.25 billion.