New scam freezes Afghan investors’ funds in Gold BS

Hundreds, and potentially thousands, of Afghans have lost access to their savings after the apparent collapse of the investment platform “Gold BS,” also known as “Thomas,” in what victims describe as one of the country’s largest recent financial scams. The platform, which began operating in October 2024, attracted investors with promises of unusually high returns through a structure that participants and analysts have described as resembling a pyramid scheme. Early payouts to some users encouraged wider participation, prompting many people to invest larger sums and recruit friends and relatives. Victims say investments ranging from $500 to more than $20,000 are now frozen. Users report being unable to withdraw their funds, while platform operators have allegedly demanded additional payments equal to 20% of account balances through another exchange service as a condition for reactivating accounts. Financial regulators and investor-protection organizations had previously warned about the company’s activities. Canadian regulatory bodies and the International Organization of Securities Commissions (IOSCO) issued alerts about suspected risks linked to the platform before its operations came under scrutiny. The case has renewed concerns about financial fraud in Afghanistan, where weak consumer protections, limited financial literacy, and economic hardship have made many citizens vulnerable to high-risk investment schemes promising quick profits. The collapse also comes at a time when many Afghan households are facing severe economic pressures. Years of economic instability, banking restrictions, unemployment, and reductions in international assistance have pushed families to seek alternative sources of income and investment opportunities, often with limited information about the risks involved. Analysts say the incident mirrors previous fraudulent schemes that targeted Afghan investors, including the notorious GoldQuest network, which attracted participants with promises of rapid returns before collapsing and leaving many people with significant financial losses. The post New scam freezes Afghan investors’ funds in Gold BS appeared first on Khaama Press.