GEMCE Pyramid Scheme Collapses Amid Widespread Panic and Fraud Allegations
The controversial online investment scheme GMCE or GEMCUE has come to an abrupt halt, with thousands of Maldivian investors facing financial losses and no access to their funds. Despite official warnings from authorities, the scheme continued operating until this week, when it became clear that the platform had collapsed.
Over the past two days, members of the GEMCE Telegram group — which includes more than 50,000 Maldivians — have been reporting difficulties withdrawing their money. Messages in the group allege that even administrators and customer support have stopped responding. While some participants are urging others to remain patient, others believe the scheme’s operators have already fled with investor funds.
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A message shared within the Telegram group claimed that GEMCUE is under regulatory review by the U.S. Financial Regulatory Authority due to suspicions of violating anti-money laundering laws. The message stated:
“Because GMCE received an official letter from the U.S. Financial Regulatory Authority, after being reported, due to the large amount of money given by GMCE in this event, the Authority believes GMCE is suspected of violating money laundering laws.”
It further claimed that auditors had been dispatched to GEMCUE’s headquarters for investigation and that the company’s Finance and Marketing Departments were cooperating.
“The relevant funds of GMCE are in the review stage (1–2 days). After the reviewers complete their work, the finance department will process all the funds normally,” the message stated.
However, sources have found that the letter is fake. There is no individual by the name of John Gibbons employed by FinCEN, and the document appears to be fabricated to mislead investors and delay panic. While Maldivian authorities have not officially confirmed the letter’s status, its legitimacy is highly questionable.
Earlier, the Maldives Police Service and the Capital Market Development Authority (CMDA) issued a joint public warning, declaring that GEMCUE (also referred to as GMCE) is operating as a pyramid scheme. They revealed that the platform is not licensed by the CMDA and does not conform to any legal investment framework in the Maldives.
Although the scheme was advertised as an AI-driven cryptocurrency grid trading platform, both local and international investigations confirmed that it was not engaged in any genuine investment activity. Instead, it was structured as a classic pyramid scheme — rewarding earlier investors primarily through the recruitment of new members.
The CMDA and police emphasized that participating in or promoting such schemes may amount to a criminal offence under Article 319 of the Penal Code, which prohibits the selling of rights to join pyramid structures.
Despite these warnings, promotions continued on Telegram and other social platforms until the collapse, with users still being encouraged to recruit others.
Authorities say that investigations are ongoing with international assistance, and they are preparing to take legal action against those responsible for operating, promoting, or recruiting for the fraudulent scheme.
The full extent of the losses remains unknown, but with tens of thousands of investors potentially affected across the Maldives, GEMCUE could become one of the largest financial scams the country has faced in recent years.
The collapse of GEMCUE adds to a growing list of pyramid and Ponzi-style scams that have emerged in the Maldives in recent years, with many citizens suffering significant financial losses. From unlicensed trading platforms to fake crypto ventures, these scams have repeatedly exploited the lack of financial literacy and oversight in digital investment spaces.
In light of this, regulatory bodies are urging the public to remain vigilant and avoid investing in schemes that promise high returns with little transparency.
