Concerns grow over GMCE 'pyramid' scheme as withdrawals stall

Concerns have increased among investors in the investment scheme known as GMCE (also referred to as GEMCUE), following reports that withdrawals are no longer being processed.

Investors using a Telegram group linked to the scheme began raising complaints on Thursday, stating they were unable to withdraw funds. Some group members noted that while deposits continued, withdrawals had stopped. The group, which has over 40,000 members, has also restricted messaging so that only administrators can post updates.

The Capital Market Development Authority (CMDA) and Maldives Police Service are investigating the scheme with support from foreign authorities. Last week, both agencies issued a joint warning, stating legal action would be taken against those promoting or recruiting others into the scheme, which they allege operates as a pyramid structure.

The GMCE case follows similar legal proceedings involving former parliamentarian Alhan Fahmy and his brothers. They have been accused of collecting large sums of money through investment packages under a separate scheme named Kings. According to the Prosecutor General’s Office, MVR 98 million was invested in 2021 through various packages.

Thirteen charges related to money laundering have been filed in the Criminal Court. The charges stem from allegations that the company failed to return investments or act on agreed terms with 13 investors. A civil court has also ordered compensation to be paid to individuals who invested in what is alleged to have been a Ponzi scheme masked as a forex trading business.