In Israel, the founder of ICO startups Sirin Labs, Stx Technologies Limited (Stox), and Leadcoin Moshe Hogeg was arrested on suspicion of cryptocurrency fraud, money laundering, and sexual crimes.
The entrepreneur also owns one of the leading football clubs in the country, Beitar (Jerusalem).
Along with him, seven more suspects were arrested, most of whom are former or current partners of Hogeg and his employees.
All eight are charged with misappropriation of millions of shekels and conspiracy to mislead investors in crypto projects. According to a police spokesman, the suspects acknowledged these projects would never come to fruition.
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Law enforcement officers raided the offices of the football club in search of evidence of the use of illegally obtained funds.
Police have been investigating Hogeg's alleged sexual crimes for several months and continuing to gather evidence. Presumably, minors took part in the events he organized.
Law enforcement officials hope that the release of Hogeg's name and the charges made will encourage more victims to file complaints.
Allegations against the entrepreneur include conspiracy, exacerbated fraud, intentional concealment of income, fraudulent activities with documents, and drug-related crimes.
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The court detained Hogeg and other suspects, extending their detention until November 24.
Hogeg's lawyers said that he "categorically denies the charges and completely cooperates with the investigation." They added that the investigation would show that the suspicions were unfounded.