CHY Mall has acquired a pyramid scheme warning from Rwanda’s Ministry of Commerce and Trade (MINICOM).
In response to MINICOM, Century Heng Yue (dba CHY MALL) was initially registered ‘to do e-commerce enterprise’ in Rwanda.
Following a joint investigation nonetheless, Rwandan authorities have concluded CHY Mall has “diverted to (a) pyramid scheme”.
As per MINICOM’s March 18th warning, pyramid schemes are
a prohibited enterprise in Rwanda, due to this fact, the general public is suggested to not interact in a type of pyramid enterprise with this firm.
The language is a bit clunky however MINICOM has recognized CHY Mall as a pyramid scheme and, owing to pyramid schemes being unlawful in Rwanda, banned it.
MINICOM’s findings mirror that of BehindMLM. BehindMLM reviewed CHY Mall again in January and noticed proper by the scheme’s e-commerce front-end.
On the core of CHY Mall is a Ponzi scheme, which depends on fixed recruitment of latest traders to remain afloat.
Who precisely is operating CHY Mall is unclear however, primarily based on advertising materials, it seems to be south-east Asians particularly concentrating on Africa.
Nigeria is the second African nation to difficulty a warning in opposition to CHY Mall. Ghana’s SEC issued a securities fraud warning in opposition to the rip-off on January eighth.
Regardless of Ghana’s regulatory warning, Alexa nonetheless ranks it because the second largest supply of site visitors to CHY Mall’s web site (17%).
Nigeria is at present the highest supply of CHY Mall traders, making up 48% of web site site visitors.
General site visitors to CHY Mall’s web site went into decline from late January.
For Ponzi schemes like CHY Mall, until new traders are discovered (in regional neighbors reminiscent of Rwanda for instance), a decline in recruitment will inevitably result in collapse.