Authorities warn public against illegal GMCE/GEMCU pyramid scheme
The CMDA and the Maldives Police Service have urged the public not to invest in such schemes and to avoid promoting them.
The Maldives Police Service and the Capital Market Development Authority (CMDA) have issued a joint statement warning the public against participating in an investment scheme operated under the names GMCE or GEMCUE, identifying it as a pyramid scheme.
The scheme is being promoted through a web application called GEMCUE, which, according to the statement, is not registered with the CMDA and does not operate within the country’s legal framework.
Investigations carried out in collaboration with foreign authorities have confirmed that the scheme is fraudulent. The organisers claim the use of artificial intelligence for crypto grid trading; however, authorities stated that the scheme does not involve genuine investment activity and is structured as a pyramid model.
The statement highlighted that participation or promotion of such schemes may constitute a criminal offence under Article 319 of the Penal Code, which prohibits the selling of rights to join pyramid schemes.
The CMDA and the Maldives Police Service have urged the public not to invest in such schemes and to avoid promoting them.
Investigations are ongoing, with assistance from international agencies. Authorities stated that legal action will be taken against individuals involved in operating, promoting, or recruiting participants for the scheme.
