News Desk
MALE’, Maldives — The GMCE investment scheme, popular among Maldivian investors from ordinary citizens to prominent figures, has been exposed as a pyramid scheme. Authorities are escalating efforts to take legal action against its operators and recruiters, though no arrests have been made so far. In a joint press release, the Maldives Police Service and the Capital Market Development Authority (CMDA) revealed that the internet-based platform, which claims to use artificial intelligence for crypto grid trading, operates illegally. The platform, accepting investments in USDT (Tether), is unregistered with the CMDA, violating Maldivian law.
Police have confirmed that GMCE is a fraudulent pyramid scheme designed to defraud investors. Promoting or recruiting others to join is a crime under Article 319 of the Penal Code, and legal action will target those involved in operating or endorsing the scheme. Authorities urged the public to avoid investing in such scams, noting their rising prevalence. Similar warnings have been issued previously.
Social media platforms have long been abuzz with warnings about the GMCE scam, with some users flagging its fraudulent nature. Posts on social platforms show images of celebrations, with locals wearing GMCE T-shirts, cutting cakes, and hosting dinner events to promote the scheme. Authorities, as is often the case, have been slow to respond to the hype. Telegram channels have also been actively promoting the Ponzi scheme, which, for reasons known or unknown, has evaded regulatory scrutiny until recently.
According to media reports, over 50,000 individuals, including government employees, members of Parliament, political appointees, police, Maldives National Defence Force personnel, and the general public, have participated in GMCE. The scheme, which falsely claims to involve USDT mining, promises a 2% daily profit but exhibits all the hallmarks of a fraudulent pyramid scheme.
Local media reports allege that a ruling People’s National Congress (PNC) MP is leading the GMCE scheme and has been appointed its team leader. Velidhoo MP Mohammed Abbas, currently part of a parliamentary delegation at the China-South Asia Forum in Kunming, has publicly supported GMCE on X, claiming that 70,000 individuals participate, 70% of MPs and 80% of government officials are involved, the scheme offers significant benefits, and no participants have been harmed.
The CMDA and police have reiterated that GMCE, also known as GEMCUE, is an unregistered, fraudulent operation. Authorities continue to warn against participation in such schemes, with investigations ongoing in collaboration with foreign authorities.
Image Credit: Anonymous user via Telegram
