MTFE Sri Lanka Catches Attention of Financial Regulatory and Law Enforcement Authorities

The Colombo Magistrate Court (MC) imposed an overseas travel restriction on four key individuals representing MTFE in Sri Lanka.

The trading platform is under investigation for suspected involvement in activities that could potentially amount to pyramid schemes. The decision to place travel restrictions comes amidst an ongoing investigation by the Financial Crimes Investigation Division (FCID). It has come to light that one of the individuals subject to the ban has already left the country.

An MTFE investor, who has chosen to remain anonymous, shared with The Morning that he finds himself locked out of his MTFE account, underscoring a growing concern among others who have expressed similar grievances on diverse online forums and social media platforms.

According to the investor, the modus operandi involves MTFE representatives initiating contact via WhatsApp, often inviting individuals to join chat groups alongside fellow users. Employing carefully devised strategies to foster trust, the representatives allegedly strive to persuade individuals to make deposits, capitalising on the allure of significant returns.

However, as per the account provided, the investor revealed that a substantial “advance” sum, ranging between Rs. 250,000 to Rs. 500,000, is subsequently demanded. This advance payment, positioned as a requisite for accessing one’s initial investment, reveals a calculated approach that capitalises on individuals’ financial commitment. The elaborate scheme’s substantial profitability is inferred from the allocation of considerable resources and time, raising concerns of potentially misleading prospects leading to significant financial losses for participants.

Meanwhile, the Central Bank of Sri Lanka (CBSL) has formally recommended a separate inquiry by the Criminal Investigation Department (CID) to further probe the allegations related to the pyramid scheme. It is worth noting that MTFE has not secured registration from the CBSL. 

MTFE’s involvement as a sponsor for the 2023 Lanka Premier League (LPL) has drawn scrutiny due to the controversy. Recent information indicates that Sri Lanka Cricket (SLC) has terminated contracts with MTFE in light of the developments.