A disgruntled investor from Canada has decided to press charges against the Israeli crypto entrepreneur Moshe Hogeg and his blockchain company Stox, Cointelegraph reports on December 1st.
The case has been filed with the United States District Court for the Western District of Washington and the plaintiff, Sean Snyder, is accusing the company of going against their whitepaper and issuing a larger quantity of tokens than was originally planned, thus greatly affecting the token value. Snyder claims they've flooded the market with 16M out of 43M STX tokens in circulation, thus causing a great drop in value.
This isn't the first time Stox ran into trouble with disgruntled investors - in January they were sued by a Chinese investor claiming the CEO and the company misappropriated millions of dollars raised in their 2017 ICO, claiming that out of the 33M raise only 5 have been spent on development. Both accusations are very difficult to prove and while the accepted opinion is that most projects raise more funds than they actually need, its very difficult to present it in court. However, filing the case with an U.S. court might attract attention of their strict market regulator, which can complicate things for any blockchain company, even driving them out of business, which was most likely one of the driving ideas for Snyder. It remains to be seen how the courts handle the lawsuits and if they affect Stox.