Egyptian police arrest a man for trading bitcoin on localbitcoin

[MrBig]

It's the official Facebook page for the Egyptian Ministry of Interior.

Basically the article says a 30 year-old Egyptian dentist, which it names as Ahmad A. H., was arrested for trading in foreign currencies. The security services contacted him on localbitcoin, and arranged an exchange of $13,900 for BTC at a rate of $570/btc. They met him in New Cairo and arrested him. He had $13,900 USD on him and a tablet, as well as pictures of various exchanges and deposits. The article concludes saying he confessed to the incident confirming that he was using the tablet and money to buy Bitcoin, and that he was put in front of the public prosecutor.

The article doesn't specify what the exact charge is, but it does mention trading in foreign currencies several times. Many of the comments refer to the government as ignorant or stupid, and asking where is the crime?

So trading in foreign currency was also an actual charge? If that's the case it's pretty weird that they can prosecute you for that... 

The decline of tourists and foreign investors in Egypt has lead to a shortage of foreign currency, and the banks are unable to keep up with the demand. Many people turn to black market exchangers, who sell foreign currency at higher rates than the banks. This has caused the value of the Egyptian pound to slide lower and lower. The government doesn't want people selling foreign currencies at anything other than the official rates and is cracking down on black market exchangers. I doubt this is a battle the government can win though as the currency black market is huge there. Bitcoin use is going up too.

[1714902747]

1714902747

[MrBig]

did i undertood that right?
The guy was selling some bitcoins, the buyer(police) ask for a meeting and he goes?

If i were in localbitcoins selling some, i would never go to a meeting... the whole point of this is anonymity.

He wasn't the seller, the police were. The whole point of localbitcoins is to be able to engage in physical exchanges of BTC with others.

Maybe he is selling bitcoin bitcoin for not a provably fair price thats why he arrested or there's someone who reported that he selling bitcoin for not provably fair price..

The article says the cyber crimes unit of the security services lured him. It doesn't mention anything about someone reporting him. It says that the police arrested "one" of those people who use Bitcoin, so I'd imagine that they are going after anyone who deals in BTC. It's not just BTC either - the government is trying to slow down the devaluation of the Egyptian pound and are cracking down on anyone who sells foreign currencies for more than the official rates.

[Kprawn]

btc2okpay was a scammer , you can find many scam accusations against him: https://bitcointalk.org/index.php?topic=626733

Involved in money laundering , he was just using bitcoin as a means to swap currencies locally. Finally got caught.

Scam thread: https://bitcointalk.org/index.php?topic=626733

Well, If this is the guy... he should be locked up...We are sick of these scammers any way. If this is not the guy, it could be judged as entrapment ..but I am not sure how the Egyptian laws work

In my country, you cannot trap people into doing crimes and then arrest them for that... He/she would not have done the crime, if you did not put him in a situation where he had the option to do that.

My guess is, that this guy were a scammer and he got caught out by the authorities. 

[MingLee]

To be honest, based on what I understand from the comments and the article here, it seems more like the guy was legitimately trying to avoid taxes or some other form of fraud and trying to use Bitcoin as a means for hiding his money from the government.

It definitely doesn't seem like the officers arrested the guy just because he was using Bitcoin, it seems far more likely it was some form of fraud.

$13,900 (or whatever it was) in cash? Really?

[robelneo]

Can't read a damn thing as it's in Egyptian language (Google translate doesn't help much.). Is there some other reason why the guy got arrested, or did they arrest him just because he's trading bitcoin?

This is also my question exactly google cannot translate it only replies from the post,I also want to know is it about trading bitcoin or is it because he scammed people of Bitcoin there's a big difference here..

[bitdumper]

Wow a scammer got hunted. Egyptian police are supporting bitcoin by hunting scammers.
He must have scammed a police personnel or his relative. Else who can track you down in bitcoin world and he was meeting to exchange bitcoins for money. From now on no meeting to exchange, i can be arrested too.

[StoreBit]

I don't think so. it will have happened. because how can you proof that  pa particular person has how much bitcoin have. ithink it is deficult to detct that how  much bitcoin a person is holding.

[adamstgBit]

anywhere in the world including the US dealing with BTC <> FIAT in amounts >10,000$ without the proper KYC/AML papers is a criminal offence

[rickadone]

If I remember, Jordan and Lebanon are also in a 'warning' state on using bitcoin for transactions so this isn't really much of a surprise for me. Although I'm a little sure that Dubai wouldn't ban bitcoins because they are actually really fond of bitcoin. I guess Egypt just want to be able to regulate their currencies and transactions.

[mobnepal]

I was setting up simple buy bitcoin with NRS in my country Nepal but after seeing this i may first get one lawer and financial advisor before i open this service to public. THere isn't any rule about cryptocurrency so i may not get problem as suggested by financial advisor of my company. I think if i get problem about similar foreign currency exchange rule than it will be pain in my ass.

[adamstgBit]

I was setting up simple buy bitcoin with NRS in my country Nepal but after seeing this i may first get one lawer and financial advisor before i open this service to public. THere isn't any rule about cryptocurrency so i may not get problem as suggested by financial advisor of my company. I think if i get problem about similar foreign currency exchange rule than it will be pain in my ass.

its best to go through an exchange for buying or selling bitcoins for many reasons..
one of the reasons is all the legitly problems are on the exchanges shoulders not yours.

[MrBig]

I was setting up simple buy bitcoin with NRS in my country Nepal but after seeing this i may first get one lawer and financial advisor before i open this service to public. THere isn't any rule about cryptocurrency so i may not get problem as suggested by financial advisor of my company. I think if i get problem about similar foreign currency exchange rule than it will be pain in my ass.

its best to go through an exchange for buying or selling bitcoins for many reasons..
one of the reasons is all the legitly problems are on the exchanges shoulders not yours.

That may not be possible in some countries. The Egyptian government has imposed limits on credit card spending amounts. Even legitimate businessmen are unable to pay for imports because of bank shortages of US dollars, forcing them to turn to black market exchangers and sometimes travelling with large amounts of money to deliver it in person.

I found a thread on another forum discussing Bitcoin being banned in Egypt, although they don't offer any information beyond the original article: http://www.borsaat.com/vb/t949261.html

[countryfree]

I don't trust facebook at all.
Has anyone a link to an article from a respected news source? Any language would be accepted.

[Evildrum]

Egypt is becoming such a crazy place with the current leadership in place any thing can change on a dime.
The place is so set on tourism that all the garbage coming out of there is just going to make it turn belly up in quite a short time.
I still can not get the image of that lady being dragged off to be raped with 50 dudes chasing after her to watch and partake.
Angered me so much to know that there where people living on that level of exsistence,turned me right off Egypt.

Hopefully a new leadership can turn things around but the current setup is a dictatorship,that will not end well.

[Junko]

If it is true that this guy is a scammer/fraudster, than good for him that he was arrested.

[yayayo]

I don't trust facebook at all.
Has anyone a link to an article from a respected news source? Any language would be accepted.

It seems crazy that the Egyptian Ministry of Interior operates an official facebook page. It's crazy, but it's possible: Maybe this way they want to show how progressive they are at adopting "new" technologies, while at the same time they can arrest people without charge. Even the "crime" was staged by them.

It's sad that developing countries, that have the most to gain from embracing Bitcoin at an early stage oppress innovation. Apparently everything they can't entirely understand or control is considered a threat. This attitude ensures that the country will remain in the same derailed state as it is in today for the next decades.

I really hope the guy will be released soon without injury...

ya.ya.yo!

[Cuntabula]

It's sad that developing countries, that have the most to gain from embracing Bitcoin at an early stage oppress innovation. Apparently everything they can't entirely understand or control is considered a threat.

Please educate yourself before typing. tnx

Economy of Egypt
From Wikipedia, the free encyclopedia

The economy of Egypt was a highly centralized planned economy focused on import substitution under President Gamal Abdel Nasser. In the 1990s, a series of International Monetary Fund arrangements, coupled with massive external debt relief resulting from Egypt's participation in the Gulf War coalition, helped Egypt improve its macroeconomic performance.

[MrBig]

I don't trust facebook at all.
Has anyone a link to an article from a respected news source? Any language would be accepted.

http://www.elnadanews.com/Egypt/421217.html
http://www.misr-eg.com/egypt/68187.html

[Carlton Banks]

I don't trust facebook at all.
Has anyone a link to an article from a respected news source? Any language would be accepted.

It seems crazy that the Egyptian Ministry of Interior operates an official facebook page. It's crazy, but it's possible: Maybe this way they want to show how progressive they are at adopting "new" technologies, while at the same time they can arrest people without charge. Even the "crime" was staged by them.

Lol, remember the "Facebook Revolution" rhetoric from the Arab Spring uprising in Egypt? One minute the Egyptians are using Facebook the same way that Romanians used fax machines against Ceaucescu, the next minute the Ministry of Love is using it to "help" them choose their medium of exchange (and the rate) during the subsequent regime. They're real admirers of irony, these bureaucrats.

[Gleb Gamow]

this is the guy account https://localbitcoins.com/accounts/profile/btc2okpay/

it seems that they contacted him on localbitcoin then they arrested him in the meeting

they released this statement about him
 (Google translate may help you if you want to follow the full story)
https://facebook.com/MoiEgy/albums/1101763136534015/

it seems that bitcoin is going to be illegal in Egypt soon !

alpetkoan.com is available (gleaned from the translation, assuming it means Bitcoin).