GMCE scheme flagged as scam, action to be taken against users: Police/ CMDA

Maldives Police Service and the Capital Market Development Authority (CMDA) said last night that GMCE investment scheme is a scam, warning the public that legal action will be taken not only against those who run and promote the scheme but also against users who participate in it.

According to a joint statement released last night, police said that GMCE scheme, which has been operating in the Maldives for about a year, is a pyramid scheme that is neither registered with the CMDA nor compliant with any legal investment framework in the country.

The statement said that the scheme falsely portrays the use of artificial intelligence in crypto grid trading to gain investor trust.

Police and CMDA asked the public not to engage in promoting or investing in such unauthorized schemes and assured that enforcement action would be pursued.

They said that any investment activity involving public solicitation must be approved by CMDA and operate under its regulatory oversight.

The statement also cautioned the public against being misled by investment platforms that use technical-sounding terms like "artificial intelligence" without offering transparency or legitimacy.

Authorities urged people to conduct thorough research before making financial commitments, noting that many individuals have already suffered significant losses by participating in fraudulent investment programs.