Chy Mall: a Ponzi Scheme in Ghana?
Chy Mall is a new e-commerce company, the business was supposedly registered in 2019 and has made some friends and foes in the business industry. They promise prospective and old customers 5% of their investments every 10 to 12 days.
The CEO of this company is known to be a Malaysian who had opened branches in some countries here in Africa. Ghana, Nigeria, and Cameroon, it is banned in Morroco.
The company uses a business strategy called New Retail. How does it work? Maybe you purchase a product at GHS 200 retail price, Chy Mall will then allow you to purchase two more of the same product at a wholesale price, probably GHS 150. Chymall will sell it for you and credit your account with your capital and profit within 10 days. You are then required to repeat this process every 10 days to earn your profit and quantum energy.
Sounds like a good deal doesn’t it? It is a good deal, but the question remains if it is a Ponzi scheme or not? Can you trust Chy mall?
First of all, investors or individuals who have worked with Chy Mall says at some point in time, you will be required to refer to other people to boost your business. And it is quite evident that when a company uses the capital of new members to pay existing members or vice versa, it is a Ponzi scheme. A pyramid scheme
Then you probably ask yourself, what about banks? Isn’t that what they do? No. Banks use Deposits of customers to pay out withdrawals to other customers. It is not the same thing.
Now that it has been established that Chy Mall is a Ponzi scheme, what other factors should you consider before deciding to join this business? What are some of the reg flags?
The government of Ghana warned citizens not to invest with Chy Mall because it is not registered under the Security and Exchange Commission (SEC) in the country. This organization is meant to regulate the growth and development of an effecient and transparent securities market.
Chy mall says it is NOT an investment company, hence they are not registered under SEC, because that is not their sector. They have certificates from GRA, GIPC and the Register Generals Department, which sounds kind of legitimate but SEC says Chy Mall is not registered under their jurisdictions, hence, if you are doing business with them, you are doing it at your own risk.
Just like small MLM scams that come all the time, they do not stay for long. As soon as people start detecting the scam in their operations they go pitch silent. Will that be the case for Chy Mall? People who worked with the company complained about upgrade and payment issues since December 2020. Are they going bankrupt?
And then some individuals say Chy Mall does legit business, that it is a pure e-commerce business, that it gives free products after every withdrawal. Why then does the business seem very shady? The Chief executive officer is a self-acclaimed multi-millionaire Ben Chah who has been seen in some videos talking about the company. There is no information about him on Wikipedia, neither is he on the Forbes list.
One best guess is, Ben Chah exists and probably has his own company somewhere in Malaysia or China. Someone might have stolen his idea intending to defraud innocent people, or maybe not. If only we had a little more information about him.
There is not one specific website for the company. One sairuimallonline.wordpress.com warns prospective customers to only WhatsApp Chy Mall phone numbers because calling them is a waste of time. Why? That sounds like a huge red flag, but if that is not trustworthy enough, you can always visit their office at Bawaleshie.
The business seems somewhat illegitimate and it has already been ruled out as a Ponzi scheme. Will you risk investing money into this? The choice is yours.