Crypto fraud in the land of the pharaohs – As the SEC storms the crypto scams And other ponzi schemes, the rest of the world is not spared from this scourge which is damaging the crypto ecosystem and tarnishing its reputation. Direction todayEgyptwhere a recent investigation uncovered a scam that allegedly made, for now, half a million dollars in damage.
Crypto scam in Egypt: a new plague
U.S’let’s learn last week. A crypto scam on the internet was arrested in Egypt. The survey tells us that the victims were encouraged to invest in a crypto platform called “Hogg Community Tech” better known as Hogg Pool. As a result, and as often in these scams, high yields on their investment.
The investment started 4,000 pounds200 euros in August, and was to bring 10 euro per day. Profits were cashable after 150 days. The new investors paid the first ones until the pyramid imploded last week and the last investors never saw their funds again.
The company in question had created fake pages on social networks (including Facebook and Instagram) and of false testimonials to give the impression of being a trustworthy company. She had also used aggressive marketing techniques to convince its future investors. Sending follow-up and reminder messages, as well as the publication of false information on the profits made by the company, receptions and luxury meals are so much rubbish that coated this Ponzi pyramid.
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Crypto Crackdown for Egyptian Authorities
It’s here devaluation of the Egyptian book who started to draw attention to the Ponzi scheme. Inflation provoking the will of the crowds to find a safe haven, reaction also visible on other countries of the African continent. HuggPool, still armed with its aggressive communication, has experienced growth that has sounded the alarm of the Egyptian Parliament, already reluctant to the arrival of cryptocurrencies on the lands of Cleopatra.
Doubts and tongues were loosened. There Web site of the site has been cut offsupposedly under maintenance, theapplication also was put offline. Classic blow also when the authors of a scam or a scam are covered, they take to their heels. In a crackdown carried out by Egyptian justice and as part of an investigation directed against the platform, 29 people were arrested last week.
A Ponzi scheme that could reach 200 million dollars
Some testimonials speak of newlyweds investing all their savings, others explain that retirees invested their end-of-life money. The construction of the pyramid made ravages. The network flew $620,000 reported and almost half a million Egyptians suspected victims.
However, the estimated losses could be much higher. Indeed, the application of the fake crypto platform has been tdownloaded 600,000 times on Google Play. All the victims did not report themselves and the pyramid could reach the $200 million height. Local media, including Al Jazeera, even talk about thescam of the century.
The preliminary investigation tells us thatpart of the stolen money was brought out of Egypt and converted to bitcoins. The masterminds of the operation, despite this judicial dragnet, would have fled, leaving behind them the small hands.
This facet of our ecosystem, the least brilliant, is regularly treated in our lines. She reminds us that too much the importance of doing your own research and taking the time to search, to investigate a project or a platform before investing. THE outrageous advertisements must be for anyone alertA red flag – even when it’s Kim Kardashian. So while waiting for the market recovery and the bitcoin bull run, invest in sound reading in order to survive this crypto winter.
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