Egyptian police reportedly recently arrested 29 people associated with the Hoggpool cryptocurrency mining app scam. In addition to seizing 95 mobile phones and 3,367 SIM cards, police said $194,000 worth of domestic and foreign currency was recovered during the arrests. According to an attorney representing more than 1,000 victims, as many as 800,000 people may have fallen victim to the scam.
88 digital currency wallets used to receive funds from investors
Egyptian police recently arrested 29 people believed to be the masterminds of the Hoggpool cryptocurrency investment scam, according to a report. During the arrests, police reportedly said that as many as 95 phones and 3,367 SIM cards were seized. Domestic and foreign currency worth $194,000 was also recovered, the report added.
According to a CBS news report Citing a statement issued by the police, the alleged masterminds of the cryptocurrency mining app scam used a total of 88 digital currency wallets to receive funds from investors. Once the funds were received, the criminal gang proceeded to redistribute them among 9,965 digital wallets. Subsequently, the funds were converted into BTC before being expelled from the country.
While the police statement claimed Hoggpool scammers had defrauded investors of up to $615,000 (£19 million), many in Egypt insist the figure is much higher. Abdulaziz Hussein, a lawyer who represents more than 1,000 victims in Cairo alone, is quoted in the report as suggesting that as many as 800,000 people may have fallen for the scam.
Use of forged documents
Although the use or trading of cryptocurrencies is prohibited in Egypt, the masterminds of the Hoggpool scam were able to lure victims by promising them an incredibly high return on investment. For example, according to the CBS report, prospective investors were offered investment options ranging from one with an initial outlay of $10 and a daily payment of $1 to one in which the investor pays $800 to purchase a mining machine that pay $55 per day. .
In addition to promises of a high return on investment, the suspected scammers are also accused of using forged documents to lure unsuspecting victims. One such document is the so-called certificate of deed of good standing that was allegedly issued to Hoggpool by the Office of the Secretary of State for the US state of Colorado.
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