GEMCUE scheme withdrawal issues spark investor panic

More than 50,000 people in Maldives are believed to have invested in the GMCE or GEMCUE scheme, which police have now confirmed to be a fraudulent investment scheme.

Investors are facing increasing anxiety as reports of non-withdrawals escalate, raising fears of significant financial losses.

The scheme, which has operated in the country for over a year, drew widespread attention after police issued a statement on Sunday night declaring it a pyramid scheme. Authorities warned that legal action would be taken against those involved in promoting or taking part in it.

A Telegram group used by GEMCUE investors in Maldives has more than 41,000 members. Group members said that withdrawal requests have suddenly stopped being processed. Some claimed that administrators have “fled,” while others tried to reassure members that funds would be returned, asking them to remain calm and “trust the system.”

Complaints have also emerged about unresponsive customer service, fueling suspicions that the platform may have collapsed.

Maldives Police Service has been investigating GEMCUE for months.

Inspector of Police Adam Naveed, from the Anti-Scam Department, told Mihaaru News that the scheme originated in Maldives. Once the case came to light, police shared information with law enforcement agencies globally via Interpol to determine if the scheme existed elsewhere. So far, no other country has reported a similar operation.

Police have launched efforts to trace the cryptocurrency wallets used in the scheme and confirmed that the entire operation runs on crypto-based transactions.

In a statement issued Saturday, authorities also warned the public that so-called “crypto grid trading using artificial intelligence” is fraudulent.

Police have identified seven individuals allegedly involved in promoting the scheme in Maldives. While the investigation is ongoing, their identities have not yet been disclosed.