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The Central Bank of Sri Lanka (CBSL) has announced that it is mulling criminal action against a group that ran a crypto investment scheme dubbed Sports Chain, seven months after an Al Jazeera investigation exposed it as a scam.
In a notice published on March 21, the monetary authority declared that the investment venture had been run as a pyramid scheme, which is prohibited under Sri Lanka’s Banking Act.
We conducted investigations for several months,” M D S N Gunatilleka, the additional director of the CBSL’s resolution and enforcement department told Al Jazeera. He declined to give further details immediately.
The CBSL said it has sought the advice of the attorney general – the chief legal adviser to the government – on pressing criminal charges against those responsible.
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.
In August 2022, Al Jazeera revealed that as the economy around them cratered, thousands of Sri Lankans, including professionals like doctors, politicians and security personnel, fell prey to the fake crypto scheme.
We conducted investigations for several months,” M D S N Gunatilleka, the additional director of the CBSL’s resolution and enforcement department told Al Jazeera. He declined to give furfurther details immediately.
The CBSL said it has sought the advice of the attorney general – the chief legal adviser to the government – on pressing criminal charges against those responsible.
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.
In August 2022, Al Jazeera revealed that as the economy around them cratered, thousands of Sri Lankans, including professionals like doctors, politicians and security personnel, fell prey to the fake crypto scheme.
SOURCE:ALJAZEERA
