Just like Ponzi schemes, the GMCE scheme initially appears to be a legitimate source of making a quick profit on your investment, but many participants of GMCE continue to report delays in withdrawals or complete loss of funds.
Freepik
An investment scheme operating under the name GMCE and GEMCUE has recently gained popularity in the Maldives. The scheme gained popularity as its users began promoting it as a high-return investment platform that promises investors substantial profits within short time frames - often under the guise of trading, cryptocurrency investments, or foreign exchange operations. This scheme typically requires investors to make an initial deposit, after which returns are paid using funds from new investors, rather than from actual profit-generating activities.
Although the scheme has gained major traction, there has always been a group of people who have pointed out the similarity of the GMCE scheme characteristics to those of a Ponzi scheme. Just like Ponzi schemes, the GMCE scheme initially appears to be a legitimate source of making a quick profit on your investment, but many participants of GMCE continue to report delays in withdrawals or complete loss of funds.
As this investment has continued to fly under the radar, gaining even more investors by the day in the Maldives, the Maldives Police Services and the Capital Market Development Authority (CMDA) have finally flagged the issue, publishing a joint statement on 16 June 2025. In the joint statement, the authorities warned citizens against investing in the scheme, noting the fraudulent nature of the scheme.
In the statement, the authority emphasized that any investment scheme operating in the Maldives must be registered and approved by CMDA, by Act No. 02/2006 (the Financial Securities Act of the Maldives). Since GMCE or GEMCUE is neither listed nor registered with the CMDA, the authorities clarified that the scheme is not operating in compliance with the law and may pose significant risks to investors.
Additionally, the authorities also noted that an investigation was carried out in collaboration with international partners which confirmed that the scheme is of deceptive nature, lacking any genuine investment activity and is structured as a pyramid model, relying on recruitment rather than legitimate financial returns.
