According to official media, Egyptian authorities have detained 29 persons, including 13 foreign nationals, on suspicion of orchestrating an online cryptocurrency scheme that robbed thousands of investors.
According to a report on Sunday, the network made roughly $620,000 in profits at the expense of victims in the nation, which is currently suffering from an economic crisis and fast inflation.
According to local media, the online platform “HoggPool” first appeared in August. It promised customers “cash rewards after having enticed them by fraudulent means,” according to a statement issued by the prosecution office late on Saturday.
The plan guaranteed substantial returns on cryptocurrency mining and trading operations in exchange for fees collected at enticing exchange rates.
In Egypt, it’s against the law to experiment with cryptocurrencies; offenders face up to three years in prison and a $325,000 fine.
HoggPool abruptly stopped operating in February and disappeared with the money, according to the state-run newspaper Al-Ahram.
When they were detained, the network allegedly had plans to introduce a new platform called “Riot,” according to the authorities.
16 Egyptians and “13 foreign nationals of the same country,” who were not identified, according to the interior ministry, had been detained. According to the report, authorities also seized 95 mobile phones, 3,367 SIM cards, and 41 foreign bank cards.
Egypt is currently going through one of its greatest economic crises ever.
Egypt’s pound has lost over half of its value relative to the US dollar since March 2022. A severe lack of dollars has stifled imports and resulted in a backlog of cargo at ports, which has a negative impact on local industries.
According to official data, inflation soared to 25.8 percent in January, the highest amount in five years. Many basic foods’ prices have risen far more quickly.
Prior to COVID-19, according to official figures, around 30% of the population was considered to be poor; analysts claim that number has subsequently increased. According to estimates, 104 million Egyptians, or close to 60 percent of the population, live in poverty.
