The Maldives Police Service and the Capital Market Development Authority (CMDA) have confirmed that the online investment platform operating under the names GMCE and GEMCUE is a fraudulent pyramid scheme.

A joint press statement issued by the two agencies warned the public against participating in or promoting the scheme and affirmed that legal action will be taken against those involved.

According to the statement, the scheme operates through a mobile application and encourages users to invest using the cryptocurrency USDT. Investors are promised daily returns of up to 2.5 per cent, with returns increasing based on the user’s ranking. The platform claims to utilise artificial intelligence to conduct “crypto grid trading” and generate profits. However, authorities have established that these claims are baseless and part of a broader fraudulent operation.

The CMDA clarified that the platform is not licensed or registered under any regulatory framework in the Maldives. The police, with assistance from foreign authorities, have verified that the platform fits this definition and is being used to mislead the public.

Authorities cautioned that such schemes often misuse complex or unfamiliar terminology like artificial intelligence and cryptocurrency to create a false sense of legitimacy. Many individuals have reportedly suffered substantial financial losses through such schemes by investing without conducting proper due diligence.

Investigations are ongoing, with both CMDA and the police working with international partners to track those behind the operation. The agencies reaffirmed their commitment to pursuing legal measures against those running, promoting, or recruiting participants for the scheme.