CNA Explains: What are pyramid schemes and are they legal in Singapore?
Following the arrest of 52 Singaporeans in China for pyramid scheme involvement, legal experts explain the distinction between illegal schemes and legitimate multi-level marketing. Pyramid schemes are strictly prohibited in Singapore due to their reliance on recruitment rather than product sales.
Why it matters
The incident serves as a warning about the legal risks of participating in recruitment-based business models that operate across international borders.
After 52 Singaporeans were arrested in China over pyramid scheme suspicions, CNA spoke to lawyers to find out more about such schemes.
A woman using a calculator. (File photo: iStock)
Davina Tham 04 Sep 2026 04:28PM (Updated: 04 Sep 2026 04:43PM) Bookmark Bookmark Share WhatsApp Telegram Facebook Twitter Email LinkedIn Set CNA as your preferred source on Google Add CNA as a trusted source to help Google better understand and surface our content in search results. Read a summary of this article on FAST. Get bite-sized news via a new cards interface. Give it a try. Click here to return to FAST Tap here to return to FAST FAST SINGAPORE: Fifty-two Singaporeans have been arrested and detained in Guangxi, China, over their suspected involvement in a pyramid scheme, Singapore authorities said on Friday (Sep 4).
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