In connection to a massive crypto investment scam, twenty-nine individuals were arrested by the Egyptian authorities.
Like many other crypto frauds, this one too was a scam scheme that lured investors into believing that Hoggpool was genuine.
Hoggpool was a cryptocurrency mining application that was specifically made for users in Egypt. Many Egyptians even invested in the platform in hopes of making lucrative returns on their investments.
What Did The Hoggpool Scheme Offer?
The Hoggpool crypto scheme offered a variety of plans at very cheap rates. The plans were offered at a price as low as $10 with a guarantee of $1 profit on a daily basis over a certain period.
On the Hoggpool App, there was an option to invest an amount of $800 in crypto mining which would result in hefty returns.
For instance, there was an offer that investors and users could gain almost $55 each day for the payment or investment they made.
A pay-out as big as that each day can amount to a huge amount by the end of the month.
It was such offers that tempted investors into investing on the platform, though it seemed too good to be true.
The icing on the cake was the fact that users were told that they were allowed to withdraw their investments on a daily basis.
This came with a tax incentive that daily withdrawals were subject to 15% tax deductions while month-end withdrawals had zero tax deductions.
Who Fell Prey To The Sham Scheme?
One Egyptian, namely Tarek Abd El-Barr saw this scheme as a golden opportunity to multiply his earnings.
He thought it was a good idea to invest in the scheme that he made out of his job as a medical supplier.
However, little did he know that he was in for a surprise that would rob him of his hard-earned money and savings.
In Egypt, the concept of mining coins is very new, and therefore, very little knowledge about this concept of crypto investment.
In Tarek’s imagination, this was a type of electronic investment like Microsoft or Amazon.
It was not just Tarek but thousands of others too who fell prey to the deals that Hoggpool had to offer.
Pyramid Scheme App Leaves Investors In Despair
Abd El-Barr is another Egyptian affected by this fraud who went public about his story.
It was in fact his brother-in-law who advised El-Barr to join the scheme since the former was making a good profit over his investment.
El-Barr was quite uncertain about the plan initially, however, he took the leap of faith and invested a sum of 6000 Egyptian pounds.
He made this investment earlier this year in February only to find out later that the scheme was nothing more than a sham.
Just like all bogus schemes gain the investors’ trust, this one too gained it initially by delivering what was promised.
Similarly, El-Barr too got back the money with profits initially, therefore, he increased his investments threefold.
The final offer by the appl promised a return that was five times that of the investment. Abd El-Barr took the risk and made the investment by jeopardizing all of his savings into the app platform.
Later when he tried to withdraw his investment, the Hoggpool app stopped responding and later on completely disappeared from the face of the Internet.
Thousands of people have been compromised at the hands of the crypto scheme, therefore, few have even taken collective legal action.
It is not unknown that the trading of Cryptocurrency is illegal in Egypt and therefore, many kept quiet about the fraud.
Victims of the fraud could turn into suspects if upon inquiry it was revealed that they were aware of the activity is illegal.
In order to present itself as genuine the Hoggpool scheme advertised its company’s US business credentials.
The lawyers and victims are using these credentials and the fake documents that the scheme issued to build upon their cases.
It is high time that the government of Egypt comes up with laws and strict rules for cryptocurrency.