By: Staff Writer
Colombo (LNW): Subsequent to the exposure of the MTFE SL Group pyramid scam operated in Sri Lanka as a trading platform for forex, commodities, stocks and crypto currency, the existence of around 70 such Ponzi schemes have come to light, informed sources revealed.
Of these illegal pyramid schemes only eight have been identified by the Central Bank and warned the public to be cautioned against falling victim to such schemes that promise easy riches and quick profits through online trading of goods and virtual currencies.
The Central Bank has banned eight pyramid schemes and around 62 other pyramid schemes are operating scot-free since 2019 with the backing of powerful politicians and officials, media reports claimed
After the investigations, the Central Bank has determined that the following entities conduct and/or have conducted prohibited schemes in contravention of the provisions of the law:
These entities are Tiens Lanka Health Care (Pvt) Ltd, Best Life International (Pvt) Ltd, Global Lifestyle Lanka (Pvt) Ltd., Mark-Wo International (Pvt) Ltd., V M L International (Pvt) Ltd., Fast 3Cycle International (Pvt) Ltd (F3C), Sport Chain App, Sports Chain ZS Society Sri Lanka, and OnmaxDT.
These schemes, often marketed as effortless ways to make money, have been identified as illegal under Sri Lankan law.
In the recent detection of the MTFE SL Group pyramid scam, the a new twist emerged following a foreign travel ban imposed on five top officials of the group, on the orders of Colombo Chief Magistrate’s Court recently).
However, it is reported that one of the five MTFE officials had already left the country for Dubai.
The Metaverse Foreign Exchange (MTFE) Group, albeit being marked as a trading platform for forex, commodities, stocks and crypto currency, has been surrounded by controversy over its rather dubious presence.
As per the facts uncovered thus far, the Central Bank has said the operations of this trading platform fall under the pyramid schemes system, which are prohibited in Sri Lanka.
Under Sri Lankan law, running pyramid schemes can result in imprisonment between three to five years. Offenders also have to pay a fine of 2 million Sri Lankan rupees ($6,222) or twice the amount received from the participants in the scheme, whichever is higher.
Pyramid schemes operate on offers such as to make “easy money” or “online profit through trading goods/virtual currencies” to make you rich quickly without much effort.
Accordingly, the public is advised to be alert and refrain from directly or indirectly being involved in pyramid schemes which could be punishable by law.
Sri Lanka has prohibited pyramid schemes which a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products.
As recruiting multiplies, recruiting becomes quickly impossible, and most members are unable to profit; as such, pyramid schemes are unsustainable and often illegal.
