Authorities Warn Over 50,000 Maldivians Caught in GMCE Pyramid Scheme
More than 50,000 Maldivians have reportedly joined an unregistered investment operation known as GMCE—also referred to as Gemcue—raising alarm among financial regulators and law enforcement agencies.
According to a report by Mihaaru News, the scheme has gained massive popularity across the Maldives over the past year, drawing participants from a wide range of backgrounds. These include resort employees, law enforcement officers, military personnel, and even sitting Members of Parliament. Many individuals are said to have deposited substantial amounts in US dollars, with some claiming to have made significant profits.
But behind the promises of quick returns lies a stark warning: the scheme is illegal.
Joint Warning from Authorities
In a joint statement released late last night, the Maldives Police Service and the Capital Market Development Authority (CMDA) declared that GMCE is operating as a pyramid scheme—an unsustainable and illegal investment model.
The CMDA confirmed that GMCE is neither registered nor licensed to conduct any form of financial operations in the Maldives. As such, any form of promotion, recruitment, or participation in the scheme is subject to legal consequences.
"The public is advised to refrain from participating in such unauthorized schemes," the statement read. "Those involved—whether as promoters or investors—may face legal action."
Telegram: The Heart of the Operation
Much of the scheme’s reach appears to be driven by a dedicated Telegram group targeting Maldivian users. The group, which reportedly has more than 50,000 members, is actively used to share investment updates, success stories, and motivational content to lure new participants.
The platform encourages individuals to recruit others in exchange for bonuses—one of the hallmark signs of a pyramid scheme, where returns are generated primarily through new member enrollment rather than genuine investments.
Financial Risks and False Promises
Authorities also expressed concern about the misleading language used by such schemes, which often invoke buzzwords like “artificial intelligence” and “blockchain” to project credibility. However, officials noted that these terms are often used without any real technological backing or transparency.
"Just because a platform uses technical jargon doesn’t mean it’s legitimate," the CMDA emphasized. "Investors must conduct thorough due diligence before putting their money at risk."
The statement also revealed that several individuals have already suffered significant financial losses by placing trust in unverified platforms like GMCE.
The surge in participation highlights broader concerns about financial literacy and economic pressures facing many Maldivians. In search of better financial outcomes, some are turning to high-risk, unregulated platforms in hopes of fast returns—without fully understanding the consequences.
This is not the first time pyramid schemes have made headlines in the Maldives, but the scale of the GMCE scheme makes it one of the most widespread in recent memory.
Authorities Urge Caution
Both the CMDA and Police have reiterated the need for caution, verification, and awareness. Before investing in any financial product, citizens are urged to consult with licensed professionals or refer to the CMDA’s list of authorized operators.
“An informed investor is a protected investor,” the joint statement concluded. “When it comes to money, skepticism is your first line of defense.”