Egyptian authorities have arrested 29 people, including 13 foreigners, on suspicion of operating an online cryptocurrency scam that allegedly defrauded thousands of investors. According to state media reports, the network managed to accumulate around $620,000 at the expense of its victims in the country which is currently suffering from a severe economic crisis and rampant inflation.
“HoggPool” crypto scammers arrested in Egypt for defrauding investors
The prosecution service released a statement on Saturday revealing that the group behind the online platform “HoggPool” had been deceiving clients by unlawfully promising them financial gains. According to the statement, clients were charged attractive exchange rates for various cryptocurrency mining and trading services with the promise of high profits. Amr Adib, a talk show presenter, highlighted the scheme, noting that “clients paid 4,000 Egyptian pounds for a computer mining tool to earn 30,000 Egyptian pounds in return; those who paid 100,000 Egyptian pounds were promised a gain of a million Egyptian pounds.”
In August, HoggPool launched its operations before abruptly disappearing in February, taking with it the funds of many investors. According to Al-Ahram, the state-run daily newspaper, authorities arrested 16 Egyptians and 13 foreign nationals of an unidentified country during their investigation into the network. Authorities reported seizing 95 mobile phones, 3,367 SIM cards, and 41 foreign bank cards.
The network was allegedly planning to launch a new platform called “Riot” when they were apprehended. Unfortunately, this incident occurs as Egypt is suffering one of its worst economic crises to date; the Egyptian pound has been devalued by half against the US dollar in just one year.
