The latest in a long line of frauds and scams, a cryptocurrency platform known as "HoggPool" has swindled thousands of investors in Egypt of a staggering $620,000, according to Al Jazeera. In response, Egyptian authorities promptly rounded up 29 people, 13 of them being foreign nationals.
This is the first instance of large-scale cryptocurrency fraud to have appeared in Egypt since 2018, when trading in crypto was officially declared to be forbidden as it contravened Islamic law. Even though this decree was not legally binding, the introduction of banking laws in 2020 has effectively put a ban in effect.
Despite this, the influx of economic woes in the country has raised the stakes, as the Egyptian pound has seen a 50% devaluation against the dollar since 2022, inspiring many of its citizens to seek quick and lucrative solutions similar to the one offered by HoggPool.
It remains to be seen, however, if this case serves as a warning to future potential cryptocurrency investors in the country.
Key Points
- Egypt has seen large-scale cryptocurrency fraud involving the "HoggPool" platform.
- The fraudulent network has cost thousands of investors around $620,000.
- 29 people have been arrested in connection to the scam, including 13 foreign citizens.
- Cryptocurrency trading has been effectively banned in Egypt since 2020.
TL;DR
A cryptocurrency scam in Egypt called "HoggPool" has defrauded thousands of investors of around $620,000. Authorities have arrested 29 people and trading crypto is effectively prohibited in the country. It remains to be seen whether this case serves as a warning for future investors.