CAIRO - 8 March 2023: The Central Bank of Egypt (CBE) issued a warning statement after the news circulated during the past days regarding an electronic platform seizing large sums of money from citizens, claiming to invest them in activities related to cryptocurrency and achieve large and quick gains.
The CBE calls on citizens not to submit to such fraudulent calls and legally criminalized activities in accordance with the Central Bank and Banking System Law promulgated by Law No. 194 of 2020.
A few days ago, the Egyptian police arrested a criminal network led by foreign elements who stole LE 19 million through the cloud mining scam HoggPool, the Ministry of Interior announced on Saturday.
Police said it arrested 29 people who constitute this criminal network, including 13 foreigners, adding that they used two villas in Cairo as their headquarters to practice their illegal activities.
The HoggPool platform, launched in August 2022, withdrew millions of pounds from hundreds of users in exchange for a daily profit. The platform said it invests in cryptocurrency mining activities.
In this regard, the Central Bank reiterated its previous warnings against dealing in all types of encrypted virtual currencies, whether with individuals, companies, or electronic applications and platforms.
The bank stressed that no licenses were issued for any of these activities to operate in the Egyptian market due to the high risks involved, including but not limited to the large fluctuation in value and its use in financial crimes and electronic piracy. In addition, it is not issued by any central bank or any official central issuing authority that can be referred to, and therefore it lacks any material cover that guarantees the stability of the currency and the protection of the rights of its dealers.