As cryptocurrency and digital assets become the new normal, online crypto scams are increasingly becoming a common issue in countries all around the world, including Egypt. In this article, we will look at the crypto scams crypto users can suffer from.
Types of Crypto Online Scams in Egypt
Illegal peer-to-peer Transactions
This online crypto scam happens when someone offers to buy tokens at an attractive rate, proposing payment through cash, bank transfers, or a cheque. Sadly, the victim and seller receive payment from criminal activities. This implicates the seller indirectly in the illegal proceedings.
Third-party Fraud
Acting like a broker, the scammer orchestrates an attractive deal between a buyer and a seller. Subsequently, the broker persuades both parties to conduct an in-person transaction, instructing the buyer to bring cash. Following the exchange, the fake broker redirects the buyer’s funds to the seller and prompts the seller to transfer the cryptocurrency to the broker’s trading account. The seller thinks the trading account belongs to the buyer, which is a lie.
Copycat Administrator
This crypto scam happens in Telegram groups. The scammer, posing as an administrator, initiates a private message with the user, feigning interest in the query and offering assistance. However, the purported help involves soliciting the target’s private keys or persuading them to log into a counterfeit platform designed by the scammer.
Giveaway Scam
Victims are enticed with the promise of receiving free cryptocurrency or NFTs in exchange for revealing their wallet’s public addresses and private keys. Sometimes, the giveaway is usually on legitimate websites. This makes it difficult for one to know it is a scam.
Fake NFTs
In this fraudulent scheme, the scammer gains unauthorized access to an NFT, replicates it, and proceeds to sell the counterfeit version on reputable platforms, deceiving unsuspecting buyers.
Pump and Dump Crypto Group
This online crypto scam commonly happens within Telegram groups or online forums. The scammer manipulated a crypto price. The scammer, often the founder or an insider, artificially inflates the value of purported utility tokens lacking genuine future potential. After the price hike, the tokens get sold off. This crashes the crypto price, leaving investors with worthless assets.
The Hoggpool Cryptocurrency Investment Scam
Last year, Egyptians suffered from a major online crypto investment scam, Hoggpool. In a promotional video for the crypto scam, a man claimed that Hoggpool was founded in Colorado in 2019. He claimed that Hoggpool invested in life sciences technology, “space tech and blockchain.” He described it as “one of the leading energy providers worldwide” and stated that it offered “cryptocurrency mining at all levels.”
Hoggpool founders and workers held receptions, parties, and meetings in luxurious hotels. This made the victims believe that the project was entirely legitimate. According to Al Jazeera, investors lost approximately $620,000, citing state media.
Final Words
There are numerous crypto users in Egypt. Hence, it is not surprising to hear that residents in the country suffer from online crypto scams. The most recent online scam that made the headlines in the country happened last year with the “Hoggpool Crypto Investment Scam.”
Frequently Asked Questions
Is Crypto Legit in Egypt?
No, crypto is not legit in Egypt.
Is it Legal to Mine Crypto in Egypt?
No, it is not legal to mine crypto in Egypt.
Is trading USDT illegal in Egypt?
Yes, trading USDT is illegal in Egypt.
Which Countries Are Crypto Banned?
Cryptocurrencies are banned in countries such as Egypt, Morocco, Kuwait, Nigeria, etc.
Does MetaMask work in Egypt?
MetaMask works in all countries, including Egypt.
Is Crypto Banned in Qatar?
Yes, crypto is banned in Qatar.
Are there Crypto Miners in Egypt?
Yes, there are crypto miners in Egypt. However, these miners do not disclose their activities just to anyone.
