National Bank of Georgia warns of cryptocurrency pyramid schemes

The National Bank of Georgia has issued a warning to the public regarding potential financial pyramid schemes operating through social media campaigns. Lasha Gzirishvili, head of the bank's Consumer Protection Department, noted that these schemes often target individuals through Facebook groups and pages by offering investment opportunities in cryptocurrency trading.

Gzirishvili cautioned that these operations appear to follow a classic pyramid model, where the primary goal is not legitimate business activity or profitable asset investment, but rather the recruitment of new members to fund payouts for earlier participants. He warned that while such schemes may appear successful in their early stages, they inevitably collapse when the influx of new capital and members slows down. At that point, participants often find themselves unable to withdraw funds, sometimes being asked for additional payments to recover their initial investments.