The Central Bank of Sri Lanka (CBSL) has banned the MTFE cryptocurrency app, saying that it operates as a pyramid scheme. A pyramid scheme is a fraudulent investment strategy where investors are promised high returns for recruiting new investors into the scheme. The scheme eventually collapses when there are no new investors to recruit.
The CBSL said that MTFE’s operations fall under the definition of a pyramid scheme because they rely on investors recruiting new investors in order to generate profits. The CBSL also said that MTFE is not registered with the CBSL, which is required for all financial institutions operating in Sri Lanka.
The ban on MTFE comes after the app was linked to a number of high-profile sponsorship deals in Sri Lanka, including the sponsorship of the Lanka Premier League cricket tournament. The CBSL said that it is committed to protecting investors from fraudulent investment schemes and that it will take action against any company that operates as a pyramid scheme.
If you have invested in MTFE, you should contact the CBSL to get more information about the ban and how to recover your money. You should also be aware that you may have been the victim of a scam.