Police say they have begun investigating the company owned by former MP for Feydhoo constituency Alhan Fahmy named 'King’s Forex Trading' which is alleged to have run a Ponzi scheme by local authorities.
Police said to the media that the allegations against the company have been brought to their attention and that they are now initializing an official investigation into the accusations.
This comes after the Bank of Maldives froze the company's accounts over the allegations.
Central Bank MMA had said that it had instructed all banks to take action against the company and that it had been taking money from clients after promoting its investment schemes on social media platforms like Facebook and Telegram.
In a statement earlier, the company had said that BML had not given it a reason why its accounts were frozen but there were no outstanding payments related to the company.
It had also said that the company would sue BML for damages caused because of its decision.
A Ponzi scheme is an investment fraud that pays existing investors with funds collected from new investors.
