MP Hisham El-Gahel called for an extensive investigation into the matter on Thursday and asserted the need to tighten monitoring of social media platforms.
El-Gahel called for the Ministry of Communications and Information Technology to ban ads by unlicensed platforms to protect citizens.
Dozens of victims of the scam have filed complaints with the police, and many on social media claim to have lost tens of thousands of pounds to the scammers.
What was HoggPool?
Appearing in August, HoggPool was an online platform that claimed to offer cryptocurrency mining and trading services for a fee.
It promised high returns on investment and attracted hundreds of Egyptians who deposited money into its account.
HoggPool offered different plans for customers depending on their budget and goals by buying or renting cryptocurrency mining machines starting from $10 with a daily profit of 10 percent.
The platform allowed Egyptians to send the money in pounds instead of dollars at prices that were lower than the official exchange rates by more than 30 percent.
This meant that users would transfer EGP 200 to the platform instead of over EGP 300 in order to rent a mining machine worth $10.
The platform earned users’ trust by posting an image of an alleged Egyptian commercial license on Facebook.
It claimed to use advanced technology and algorithms to mine various cryptocurrencies such as Bitcoin, Ethereum and Dogecoin.
It also claimed to have a team of experts who could help customers trade their coins on different exchanges.
However, on 24 February, the platform suddenly stopped paying its clients.
Many users tried to contact the platform to no avail.
In recent weeks, YouTubers and online content creators had warned the public against HoggPool.
Some pointed out several elements on the platform’s website and mobile app that indicated it was a scam.
“I bought [mining] machines with EGP 85,000… and only received EGP 8,000 [in return],” Nasr Helal, one of the victims, told Malaffat TV programme on Heya Channel on Thursday, saying he joined the platform in mid-February.
Helal said that he and his sons subscribed to the programme and that they would receive the funds via electronic wallet.
Some customers also said on social media that they had invested their life savings or borrowed money from relatives or friends to join the platform.
This is not the first large-scale online Ponzi scheme to take place in Egypt.
In recent years, many Egyptians have fallen victim to similar scams, losing significant amounts of money in the process.
The country's economic crisis has made people more susceptible to these types of scams with some looking for ways to make quick and easy money.
Scams like HoggPool are not uncommon in the cryptocurrency world.
Some criminals use fake websites, emails or apps to trick people into giving them money or personal information.
Dealing in cryptocurrency is illegal in Egypt and is punishable by prison and a fine of up to EGP 10 million.
The Central Bank of Egypt has previously warned the public against dealing in cryptocurrencies.