• Egyptian police have arrested 29 individuals associated with the Hoggpool cryptocurrency mining app scam.
• 95 mobile phones, 3,367 SIM cards and currency valued at $194,000 were seized during the arrests.
• It is believed that up to 800,000 people may have fallen victim to the scam.
Arrests Made by Egyptian Police
The Egyptian police recently arrested 29 individuals thought to be the masterminds of a cryptocurrency mining app scam known as Hoggpool. During the arrests, 95 mobile phones and 3,367 SIM cards were seized in addition to domestic and foreign currency worth $194,000.
Victims of The Scam
It is believed that as many as 800,000 people may have been victimized by the scam according to a lawyer representing over 1,000 victims from Cairo alone. The masterminds behind this scheme used 88 digital wallets in order to receive funds from investors before redistributing it across 9,965 wallets and converting it into BTC before taking it out of Egypt.
Promises of High Returns
The alleged scammers were able to lure victims by promising them an unrealistic high return on investment despite trading or using cryptocurrency being prohibited in Egypt. For instance they offered investors an option where they would pay $10 initially with a daily payout of $1 or one where they pay $800 for a mining machine that pays out $55 per day.
Forged Documents Used
In order to further entice potential investors into investing in their scheme, these criminals also resorted to using forged documents such as certificates supposedly issued by the Office of Secretary State of Colorado which stated that Hoggpool was in good standing with them when it was not true at all.
Despite making these arrests and seizing items related to their crimes, investigations are still ongoing in order for authorities to assess how much money has been lost due investors falling prey to this fraudulent scheme.