The Maldives Police Service and the Capital Market Development Authority (CMDA) have issued a joint warning against an investment scheme operating under the names GMCE and GEMCUE, describing it as a fraudulent pyramid operation.
According to the statement, the scheme is being promoted through a web application called GEMCUE, which is neither registered with the CMDA nor compliant with the country’s legal framework. Authorities stated that investigations carried out in collaboration with international partners confirmed the scheme to be deceptive in nature.
Promoters of GEMCUE reportedly claim to use artificial intelligence for crypto grid trading. However, the statement clarified that the operation lacks any genuine investment activity and is structured as a pyramid model, relying on recruitment rather than legitimate financial returns.
The authorities further noted that involvement in such schemes could be considered a criminal offence under Article 319 of the Penal Code, which explicitly prohibits the sale of rights to join pyramid schemes. Legal action will be taken against those found to be operating, promoting, or recruiting participants for the scheme.
The CMDA and the Police have called on the public to exercise caution and refrain from engaging in or disseminating such fraudulent ventures. Investigations are ongoing, with support from foreign law enforcement agencies.
