Colombian President Juan Manuel Santos ordered a police investigation into WCM777's local business. Three weeks later, the government suspended WCM777 operations nationwide and initiated criminal probes into top affiliate investors.
The Superintendent of Companies announced the immediate suspension last Saturday. This order prohibits Colombian affiliate investors from advertising WCM777.
Colombian police are now actively targeting WCM777 affiliates advertising online. They seek the removal of promotional content from the internet.
The government also froze WCM777 affiliate's deposited investments and returns held within Colombia. Authorities seized assets belonging to key Colombian affiliate investors.
The decision to halt WCM777's Colombian operations stems from what authorities termed "unauthorized mass-collection of money." Colombian police categorize these activities as a pyramid scheme.
WCM777 CEO Ming Xu has not yet issued an official response to the Colombian actions. He previously commented on Twitter after Massachusetts revealed an investigation and subsequent ban in the US state.
At that time, Xu tweeted about rebuilding WCM777 to be "fully complied" and noted the company was "far behind on IT, customer service and training." He added it needed to be "reborn" and stated, "We will be willing to be cooperative and be in compliance."
WCM777 announced it was "closing their US operations" and "relocating" back to Hong Kong on the same day Massachusetts' Securities Division requested information on local affiliate investors. Observers viewed this move as largely symbolic, as WCM777 continued to accept US funds for investment through Global Payout, a Californian payment processor.
The Massachusetts investigation came to light late last week. Regulatory bodies in the US, both at state and federal levels, may consider further action.
The investigation by the Colombian government, initiated by President Santos, concluded with a full operational ban on WCM777 across the country.