Rwanda's Ministry of Trade and Industry (MINICOM) issued a public warning against CHY Mall on March 18th, identifying the company as an illegal pyramid scheme. The regulatory body advised citizens against engaging with Century Heng Yue, which operates under the CHY Mall brand, citing a diversion from its registered e-commerce business model.
MINICOM's investigation concluded that CHY Mall had "diverted to (a) pyramid scheme" despite its initial registration for e-commerce operations in Rwanda. Pyramid schemes are explicitly prohibited under Rwandan law. The ministry's directive makes it clear that any form of pyramid business with this company is illegal within the nation's borders.
CHY Mall operates as a Ponzi scheme, relying on a constant inflow of new investor funds to pay off earlier participants. This model often masquerades behind a legitimate-sounding product or service, in this case, a purported e-commerce platform. The actual revenue generation stems primarily from recruitment, not from the sale of goods or services to genuine retail customers.
Rwanda's warning follows similar action from regulators in other African nations. Ghana's Securities and Exchange Commission (SEC) issued a securities fraud warning against CHY Mall on January 8th. Despite this official caution, Alexa data indicates Ghana still accounts for 17% of CHY Mall's website traffic, making it the second-largest source of visitors.
Nigeria currently represents the largest source of CHY Mall investors, driving 48% of the scheme's website traffic. However, overall traffic to CHY Mall's digital platform began a steady decline from late January. This trend is critical for Ponzi schemes; without a continuous stream of new recruits, particularly from heavily targeted regions, the model becomes unsustainable and faces an inevitable collapse.
The specific individuals behind CHY Mall remain largely unidentified. Marketing materials suggest the scheme originates from South-East Asia, with a clear focus on recruiting participants across the African continent. This geographic targeting highlights a common tactic of such schemes, which often seek out regions with less stringent financial oversight or populations unfamiliar with complex financial fraud.
Rwandan authorities have therefore taken steps to protect citizens from CHY Mall's illicit operations, reinforcing the legal prohibitions against such business models in the country. Individuals who believe they have been defrauded by CHY Mall or similar schemes should contact the Rwandan Ministry of Trade and Industry for guidance on recourse.