Moshe Hogeg, owner of the Beitar Jerusalem Football Club, was arrested on Thursday morning for committing fraud using cryptocurrencies, and for sexual offenses.
According to Israeli media, Hogeg and six other businessmen committed fraud by tricking entrepreneurs into investing in cryptocurrency ventures that had been opened by Hogeg.
The suspects reportedly presented false information and profits to clients in order to attract potential investors.
Following his arrest, the soccer team owner was forced to cancel his conference on cryptocurrency, non-fungible tokens and Facebook’s Metaverse scheduled for Thursday.
“Had to postpone today’s conference, I apologize,” Hogeg wrote on Facebook. “It’s for the best.”
After an extensive undercover investigation by the Israel Police national crime unit, Lahav 433, seven Israelis, including Hogeg and a member of his family, were arrested at the Beitar Jerusalem offices in Jerusalem.
Hogeg’s attorneys Amit Hadad and Moshe Mazor released a statement stating that Hogeg “denies all suspicions against him, and is fully cooperating with investigators.”
In 2018, Jewish-American businessman and philanthropist Shlomo Rechnitz filed a $5 million lawsuit against Hogeg over alleged fraud in the sale of shares of Mobli, a photo and video-sharing company founded by Hogeg and his brother, Oded.
A year later, Japanese investor Zhewen Hu filed a NIS 17 million lawsuit against Hogeg and his crypto company Stox, claiming Hogeg took NIS 34 million out of the company into his personal pocket.
The 40-year-old businessman is estimated to be worth hundreds of millions of shekels.