Thousands of Egyptians defrauded by digital currency app promising profits

Thousands of Egyptians have fallen victim to a fraudulent investment application called “Hoggpool,” resulting in financial losses of about 6 billion Egyptian pounds ($195 million).

Egyptian lawyer Abdulaziz Hussein filed judicial reports to the Cairo security directorate on behalf of more than 150 defrauded citizens, saying that his clients were deceived by the Hoggpool platform.

Hussein added that some of his clients had sold land plots and gold holdings to invest in the platform, hoping to earn a significant return on investment. However, the platform abruptly closed on Feb. 28, leaving many investors with nothing.

Hoggpool was advertised as a way to earn money through digital currency mining and investment. Users could supposedly earn money by purchasing a device for 10 Egyptian pounds or by investing money starting with 200 Egyptian pounds, which, it claimed, would be doubled in just 10 days. The platform promised significant profits, and its operators went to great lengths to convince potential investors of its legitimacy.

Ahmed K., a resident of Port Said, was lured by ads on Facebook and lavish parties organized by Hoggpool officials. He said: “They deluded us into thinking that we could profit by depositing money to participate in the platform, starting with 200 pounds, and increasing according to the customer’s desire to profit. After I put about 10,000 pounds in the platform, which was normal, I was surprised by its closure.”

According to Muhammad Hani, one of the supervisors of the Hoggpool application, the company was making large profits, which were distributed among traders on the platform. Hani said he was also a victim and was not in direct contact with the main suspects of the fraud.

He added: “The company used computers to conduct operations through social media and digital platforms. The company was actually making big profits and distributing them to the traders involved. I used to run the profits mechanism every day in order to see the daily gains of the traders on it. My own profits from it came every day.”

Security services have arrested several administrators of the platform, however, the three main suspects are yet to be caught.

“This incident highlights the dangers of investing in unregulated platforms that promise significant returns. Investors should exercise caution and conduct thorough research before investing in any scheme,” Hussein warned.

“Egyptian citizens must be careful and not be lured by promises of easy profits.”