29 Held For Online Cryptocurrency Scam In Egypt
- 29 arrested in Egypt for cryptocurrency scam defrauding investors $620,000.
- Illegal HoggPool platform scammed investors with promises of financial gains.
- Egypt suffers a severe economic crisis with inflation at 25.8% and rising poverty.
According to state media reports on Sunday, 29 individuals have been detained by Egyptian authorities for allegedly operating a cryptocurrency scam online that duped thousands of investors, including 13 foreigners. The network is said to have defrauded victims in a country already struggling with the economic crisis and high inflation, with losses amounting to approximately $620,000.
The prosecution service released a statement on Saturday revealing that an online platform called “HoggPool” had emerged in August, enticing customers with fraudulent tactics and promising them financial gains. The platform offered cryptocurrency mining and trading services, charging fees at a favorable foreign exchange rate. Still, it was illegal to engage in such activities in Egypt, with penalties that could include imprisonment and fines of up to $325,000.
According to the state-run daily newspaper, Al-Ahram, HoggPool unexpectedly shut down in February and disappeared with investors’ money.
Upon their arrest, authorities discovered that the network was preparing to launch a new platform named “Riot”. The interior ministry disclosed that the group comprised 16 Egyptians and 13 foreign nationals of an unspecified country. The authorities also seized 95 mobile phones, 3,367 SIM cards, and 41 foreign bank cards.
Egypt is currently grappling with one of its most severe economic crises in history. Since March 2022, the Egyptian pound has lost nearly half its value against the US dollar, causing an acute dollar shortage that has led to a backlog of goods at ports, negatively impacting local industries.
As per official data, inflation rose to 25.8 percent in January, the highest it has been in five years, with prices for several essential food items increasing even more rapidly. Prior to the onset of the COVID-19 pandemic, roughly 30 percent of the population was classified as poor by official statistics, and experts suggest that this number has increased since then. Approximately 60 percent of Egypt’s 104 million citizens are believed to be at or below the poverty line.
Posted Date: July 8, 2023
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