The Hoggpool project has been accused of committing a crypto fraud of $615,000 by Egyptian police.
Authorities have taken into custody 29 individuals who were involved in the distribution of the mobile application, which was designed to attract investors in cryptocurrencies.
According to the police, around 800,000 investors suffered from reckless investments due to false promises of high profits made by the organizers of the Hoggpool project.
The organizers promised daily payouts of $1 for a $10 investment, while a larger investment of $800 was promised to yield a daily payout of $55 from mining equipment. These promises have been labeled as fraudulent by the police.
Apart from this, the alleged scammers have been accused of falsifying registration documents with the secretariat of the US state of Colorado.
A lawyer representing over a thousand affected investors from Cairo has claimed that the total losses could exceed $615,000 in foreign currency.
To receive the investors’ money, the organizers used 88 cryptocurrency addresses, which were then distributed among 9,965 addresses and converted into bitcoins.
Interestingly, Egypt has seen a significant increase in cryptocurrency transactions, with transfers in crypto assets rising by 221.7% in the past year.
Nonetheless, this has also made the country vulnerable to such fraudulent schemes. The Hoggpool project is a clear example of how investors can fall prey to scams, which promise quick and high returns, but ultimately lead to significant losses.