A group of disgruntled investors has raised the alarm after a gemstone-cryptocurrency investment scheme failed to deliver the promised returns, leaving many out of pocket and demanding refunds. The scheme, which bears the hallmarks of a multi-level marketing operation, has sparked public outrage and attracted police attention in Singapore.
On August 23, tensions boiled over at Ubi Techpark in Singapore, where frustrated investors confronted the staff of Amtop Holding and Universal Mall, two companies associated with the scheme. Police were called to the scene to restore calm after some investors began thumping tables and shouting at employees.
The investment programme, which involved amber gemstones, offered participants points that could be redeemed for cryptocurrency tokens, with promises of high returns. However, the expected profits never materialised, leading many to accuse the operators of misleading them.
A Scheme Gone Wrong
Among those affected is 42-year-old Shonna Seow, who turned up at the Ubi Techpark office alongside her elderly parents, both in their 80s. Her parents had invested $35,000 in the scheme back in 2017 through Global GC, a company now listed on Singapore’s Monetary Authority’s investor alert list.
“We didn’t earn any profits, not even one cent. We only got a few hundred dollars from introducing new members,” Seow’s mother told The Straits Times in Mandarin. “They said those were profits, but it was actually only commission.”
When they sought to recover their investment, they were informed they would have to pay an additional sum of money. Seow lamented how her parents, who sold their three-room flat to fund their investment, had hoped to use the money for their retirement. “These old people don’t even know how to use computers; how do you expect them to understand cryptocurrency?” she questioned.
Retiree Dennis Tan, 56, shared a similar experience, having invested more than US$20,000 with USFIA Singapore in 2015. He was offered a 10% commission for every new member he introduced, but the promised returns from the investment never materialised. He, too, has filed a police report.
Links to a U.S. Pyramid Scheme
Investigations have revealed that both Global GC and USFIA Singapore are linked to a broader international network. USFIA Singapore was an affiliate of USFIA Inc., a Los Angeles-based company at the centre of a pyramid scheme run by U.S. citizen Steve Chen. Chen was convicted in 2021 for defrauding over 70,000 investors worldwide, raising nearly US$197 million. He was sentenced to 10 years in prison.
Chen had falsely claimed that his company owned several large amber mines in the Dominican Republic and Argentina. Much of the funds raised from the scheme were found to have financed his lavish lifestyle. Investigators in the United States have traced financial connections between USFIA Singapore and Chen’s operations.
The Web of Companies Involved
At the centre of the scheme in Singapore is Lionel Wong, also known as Wong Yet Loong. Wong registered Global GC in 2015, and the company was struck off in 2023. Despite not being listed as an official representative of Amtop Holding or Universal Mall, Wong is believed to still hold influence over both companies. On August 23, he was present at Ubi Techpark, where he engaged with angry investors.
Wong has repeatedly distanced himself from USFIA Inc. When questioned about the failed investment scheme, Wong stated, “There were a lot of problems in the US, and there were things that could not be done in Singapore,” but he did not provide further details.
The companies associated with the scheme have faced multiple legal and regulatory issues. Amtop Holding and Universal Mall are not licensed by the Monetary Authority of Singapore (MAS) to provide financial services. Another firm involved, MaxiTrading Invest OU, registered in Estonia, was liquidated in September 2024, further complicating efforts to recover investors’ funds.
Legal Options for Investors
Legal experts have pointed out that investors may have recourse through civil claims if they were misled by false representations. Commercial lawyer Daniel Soo explained, “If these representations were found to be false, they would have a remedy by way of a civil claim for fraud.” Soo also noted that even if companies are struck off, investors could still pursue legal action against directors personally.
Walter Silvester, managing director at Silvester Legal, advised that investors should always request written documentation of any claims made by companies about investment schemes. “It could very well be that (the director) genuinely wanted to get this amber and cryptocurrency thing going, and it just didn’t work out,” Silvester added, noting that failed business ventures do not necessarily constitute fraud.
A Cautionary Tale
The Monetary Authority of Singapore has urged investors to thoroughly vet any entities offering financial products. A spokesperson for MAS reiterated, “They should ask for details about the entity, including its track record and background of the people running the operation before making any investment decision.” MAS strongly recommends that investors only deal with regulated entities to ensure their protection under Singaporean law.
