Bhutan Hit by Ponzi Scheme, Thousands Lured into Investment Scam

A massive Ponzi scheme has been uncovered in Bhutan, with over 30,000 locals duped into investing in a fraudulent multi-level marketing plan.

The Scheme: Tallwin Life

The Tallwin Life Scheme, which claims to be based in the United States, has been luring citizens, especially those from rural areas and uneducated individuals, through social media platforms like Telegram. The scheme promises unrealistic returns, claiming that an initial investment of USD 30 or Nu 2,700 will yield a return of 1,534.5 USD or Nu 122,760 after just 11-12 months.

Warning Signs

Experts have warned that the scheme is likely to be a scam. Despite warnings from the Royal Monetary Authority (RMA) and crypto experts, many Bhutanese citizens continue to participate in the scheme.

How Ponzi Schemes Work

Ponzi schemes like Tallwin Life work by paying initial investors to build a reputation, before disappearing with most of the money invested. A tech expert has urged people to be cautious of such schemes, particularly in developing countries like Bhutan where people may not be aware of their true nature.

Consequences

Some Bhutanese citizens who have joined the scheme claim it is legitimate, but experts say that once the scheme collapses, most people will lose their investments. The Office of Consumer Protection Unit (OCP) has received complaints from individuals who feel they were duped into investing in the scheme.

Lessons Learned

The case highlights the importance of vigilance and education among citizens to avoid falling prey to such scams.

Takeaways:

• Be cautious of investment opportunities that promise unrealistic returns.
• Research the company thoroughly before investing.
• Don’t invest more than you can afford to lose.
• Stay informed about financial schemes and scams through reputable sources.