Cryptocurrency scam ring busted in Egypt

Egyptian authorities on Monday, March 6, arrested 29 people involved in a cryptocurrency scam that defrauded thousands of unsuspecting investors of roughly $620,000 through an online platform called “HoggPool.”

The details

• The crime ring was allegedly being run out of two villas in the nation’s capital — Cairo — with 13 out of the 29 suspects identified as foreign nationals of unknown origin, according to a report from Egypt Today.
• The scheme first appeared in August 2022 as a crypto mining and trading company, offering investors large profits of as much as $1 daily return on a $10 investment.
• The scammers suddenly shut down the scheme this year after allegedly acquiring about $620,000 from investors and were working on a new scam at the time of their arrest.
• Police also recovered 95 mobile phones, 3,367 sim cards and about $194,000 worth of Egyptian and foreign currency at the scene of the arrest.

Key background

• Cryptocurrency trading in Egypt was declared forbidden under Islamic law in 2018. According to banking laws, engaging with cryptocurrencies can lead to jail time and a fine of over $320,000.
• However, crypto interests remain high among Egyptians amid rising inflation which currently stands at 32%.