Egyptian authorities have arrested 16 nationals and 13 foreigners who participated in a crypto scheme that resulted in losses of at least $620,000 for victims.
The scheme targeted Egyptians based in the country for the most part through the HoggPool platform, which was launched in August.
HoggPool promised high returns which never materialized. Instead, the prosecutor’s office explained that the service was set up to lure investors and defraud them of their money.
HoggPool promised victims they would multiply their investments at unrealistic rates.
Other than the platform operating with clear malice in mind, HoggPool was also illegal under Egyptian law, as are other crypto platforms. Authorities originally shut it down in August, but arrests have now been made.
Investigators found out that the team behind HoggPool was preparing to launch a new venture, Riot, branding itself as a similar platform where citizens can generate significant returns on their investment.
Upon conducting the arrests, police seized 95 mobile phones, 41 foreign bank cards and 3,367 SIM cards.
Meanwhile, Egyptians have been increasingly exploring alternative finance, and cryptocurrencies. The depreciation of the Egyptian pound has pushed many people into looking for ways to buoy up their savings or shield them from further loss of value.
Crypto scams have been increasing across the globe, with all sorts of companies setting up shop to make a quick killing on naïve investors.
Many of these companies go unpunished even when they enjoy a significant media presence, as is the case with Khabib Nurmagomedov who was accused by a private investigative crypto account, Coffeezilla, of running an NFT scam.
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