Police arrested Moshe Hogg, owner of Singularity - suspected of fraud of hundreds of millions

The police arrested Moshe Hogg, the owner of the Singularity Foundation and the Betar Jerusalem Group, this morning (Thursday). He is suspected of fraud in the amount of hundreds of millions of shekels as well as sexual and moral offenses. The covert investigation lasted several months - and even a year.
Along with him, seven other suspects, partners or senior employees of Hogg's Singularity Group, who in recent years have raised hundreds of millions of dollars from investors in Israel and around the world, were arrested for various projects in which digital coins (cryptocurrencies) were issued. Police suspect that the detainees knew that the projects for which funds were raised would not be implemented. One of the detainees is Adi Sheleg, who was a partner in the Singularity Foundation, and was previously a state witness in the case in which Nochi Dankner was convicted.
Justice Erez Melamed of the Magistrate's Court in Petah Tikva said at the hearing on the extension of detention: "According to the suspicion (the suspects) raised money from investors in a systematic manner while presenting sophisticated misrepresentations in cryptographic ventures.
A police spokesman said at the hearing that Snow is a key figure in the affair, both in his role and as an accomplice. The police claim that there is a suspicion of disruption and escape from the country in his case. Sheleg's lawyer, Avi Chimi, claimed that "in 2018 Sheleg left the business venture relating to the affair without past commitments and deposits, and when he enjoyed the profits only as a shareholder - he had neither a position nor a holder of any position." But police made it clear that "Snow has admitted to his interrogation, and his involvement is clear and present." Before the hearing, Snow told his lawyer: "When I do bad things, I know how to take responsibility. I finished my part in the project in 2018, and I arranged all the details."
According to the suspicion, each of the detainees pocketed tens of millions of shekels. Apparently, the covert investigation was opened in part due to allegations of fraud raised by two people who had previously worked with a celebrant, and the police became aware of them.
On behalf of the attorneys Moshe Mazor and Amit Hadad, representing Moshe Hogg, it was stated: "These are issues that were published in the past on behalf of interested parties and which the police are currently investigating. "Towards him."
Against Celebrates and Singularities several lawsuits have been filed in recent years by investors around the world, who have alleged fraud. Some of the lawsuits were settled out of court. In one of them, for example, a $ 4 million settlement was set that was paid to a group of investors that sued in 2018.
The most significant lawsuit was filed a few months ago, by two former employees of the group, Roi Baruchiel and Eran Okashi, against Hogg and his other partners in the Singularites and its executives. In the lawsuit, they unveiled the alleged method of the crypto sting, and they even brought up things said by a senior source, the late Attorney General Steve Kruger, according to which a thief from investors is celebrating and he could end up in jail.
The prosecution detailed cases of three ventures, one of which is the Sirin-Labs currency, which when launched gained international fame because its launch used footballer Lionel Messi. According to the lawsuit, these three ventures together raised $ 250 million.
The lawsuit unfolds a method in which, ostensibly, instead of investing money in promoting digital currencies and in their trading arena, the developers took the money into their pockets in various methods. For example, out of $ 180 million raised from Japanese investors, two-thirds went to entrepreneurs, and only a third to project promotion.
In some cases, it was alleged, money flowed into a wasteful journey that included the purchase of luxury cars, flights on private jets, suites and the purchase of real estate which in one case, according to the indictment, served as a brothel.
The lawsuit also states that Singularities sponsored $ 9 million for Betar Jerusalem, a move that, according to the lawsuit, was intended to smuggle in investors' money.
One year and three months before this lawsuit, a lawsuit was filed in February 2020 against one of the detainees, regarding a fundraiser in which $ 50 million was poured in a short time. The plaintiff raised similar allegations to those raised in the later lawsuit, about the theft of investors' money. Among other things, he claimed that the distribution of coins to investors was delayed for three weeks, so that until investors received their money, the value of the currency dropped sharply, and investors were left with nothing. No statement of defense was filed in this lawsuit, and the defendant argued that whoever should respond to the allegations is celebrating.
The parties eventually reached a settlement outside the walls of the court, despite opposition from the plaintiff's lawyer, who was replaced at the last minute. According to information received by TheMarker, the same prosecutor regretted reaching a compromise, and in recent months has filed a police complaint against Celebrating and the others involved.