CNA Explains: What are pyramid schemes and are they legal in Singapore?

Singapore announced on Friday that China had detained 52 of its citizens for their suspected involvement in pyramid schemes, marking what local media described as the largest mass arrest of Singaporean citizens abroad to date. The arrests occurred in Guangxi, a southern province of China, as part of a law enforcement operation targeting suspected pyramid schemes and related offenses, according to Singapore's foreign ministry and police. The exact timing of the arrests has not been disclosed.

Singapore's Ministry of Foreign Affairs (MFA) and police released a joint statement confirming the arrests and stating that Chinese authorities are currently conducting investigations. The MFA has reached out to their Chinese counterparts to gather additional information. Singaporean diplomats have visited the detained individuals to ensure their well-being and provide necessary consular assistance.

The statement also warned Singaporeans to be cautious when approached by schemes that involve recruiting participants or requiring upfront payments of significant sums of money, both domestically and internationally.

China has not officially confirmed these arrests. When asked about the matter by AFP, Beijing's foreign ministry stated that it adheres to the law when handling criminal cases involving foreign nationals. Singapore has previously encountered cases involving Chinese nationals accused of running or facilitating cross-border criminal operations.

In 2023, Singapore's police arrested 10 Chinese nationals and Chinese-born foreigners in a large-scale anti-money laundering operation, which involved the seizure or freezing of approximately US$2.4 billion in assets, including luxury properties, vehicles, cash, and cryptocurrency.