The Global Investment Group (GIG), operating under QVSE, is facing scrutiny in Kenya after investors reportedly began experiencing difficulties withdrawing money from the platform.
The controversy has raised questions about how the investment operation worked, who controls it, and whether it was legally authorized to offer financial services in the country.
The platform attracted many Kenyans with a minimum investment of KSh65,000 and promised fixed daily returns.
Parliament is now investigating the operation following concerns raised about investor protection and the possibility of significant financial losses.
How QVSE Attracted Kenyan Investors
QVSE presented itself to investors as an online platform linked to cryptocurrency and trading in United States stocks. Participants were required to commit money and could then see daily returns or profits reflected on their accounts.
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Matungulu MP Stephen Mule, who raised the matter in the National Assembly, said the platform was targeting ordinary citizens, small-scale traders, and economically vulnerable groups. He said investors were required to put in approximately KSh65,000 and were promised fixed daily returns.
investment model also gained traction through early participants who claimed to have successfully withdrawn money. In a spot check, early members withdrew profits, encouraging others to join
Reports have also raised concerns about teachers participating in the program, with some accounts alleging that individuals took loans to raise the required investment.
Investors Face Withdrawal Problems
The biggest concern emerged when investors reportedly began struggling to access their money.
Mule told Parliament that investors were allegedly unable to withdraw their initial capital and were restricted to executing one trade per day after receiving a notification from the company through their mobile phones.
The withdrawal concerns intensified in early September. Some participants said a purported humanitarian campaign had been cited as the reason for delays. Investors expecting withdrawals on September 4 were reportedly informed that the campaign had been extended to the following Tuesday.
In a spot check, investors continued seeing profits displayed on their accounts even as withdrawals became difficult.
A new announcement currently displayed on the QVSE platform provides the company’s explanation for the latest restrictions. QVSE says its Market Surveillance Division detected “severe violations” involving users operating multiple accounts within Global Investment Group.
According to the announcement, users allegedly borrowed, bought or sold accounts for third-party operation. QVSE says such conduct violates requirements relating to the identification of the ultimate beneficial owner (UBO) and can result in accounts being frozen or permanently banned.
The platform says Global Investment Group has consequently been ordered to immediately stop trading activities and submit a risk-control and rectification plan. It says restrictions on team trading and platform activities will be lifted only after QVSE officials review and approve the proposed measures.
The announcement cites the USA PATRIOT Act and FINRA Rule 3310. FINRA Rule 3310 requires FINRA member firms to maintain anti-money-laundering programs, including risk-based customer due diligence and procedures concerning beneficial owners.
Also Read: New Cryptocurrency Rules Take Effect as Kenya Prepares for Licensing of Virtual Asset Providers
Parliament probes on legality of QVSE
During the August 12 National Assembly sitting, Mule formally requested a statement from the Departmental Committee on Finance and National Planning concerning the operation of QVSE under Global Investment Group in Kenya.
Speaker Moses Wetang’ula directed the committee to investigate the platform to determine whether QVSE and Global Investment Group are legally authorized to provide investment or financial services in Kenya, and which laws govern their operations.
Parliament is also seeking clarity on the ownership and operational structure of QVSE and Global Investment Group, including any local representatives or partners. The committee is expected to examine whether any action has been taken over allegations that the operation could constitute an unlawful investment or pyramid scheme.
The withdrawal problems have fuelled claims that QVSE could be operating as a Ponzi or pyramid scheme.
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