MMM Global Ponzi scheme collapsed, Mavrodi on the run!

11 April, AtoZForex, London – Russian convict Sergey Mavrodi has allegedly disappeared after announcing that his Bitcoin-based MMM Global scheme had failed.

The company’s local branch MMM South Africa is one of nine companies which are now being investigated for being an alleged Ponzi scheme by the South African Police Service’s Specialised Commercial Crimes Unit. The scheme is backed by the bitcoin currency, which is a payment system and a digital asset.

MMM Global Ponzi scheme

The South African member “community” has been growing in numbers over the years. The SA platform had officially said that its members are encouraged to donate money to others in return to bitcoin-linked virtual currency Mavros. This way, the donating members can apparently get 30% return on their rand “investment”. A Ponzi scheme occurs when a return is 20% higher than the repo rate, which in SA is 7%.

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Meanwhile, the South African version of MMM Global Ponzi scheme, which offers 30% returns, is still operational and said the crash will not affect its members.

Predicted collapse

A website that investigates multi-level marketing schemes predicted the collapse few days before it happened.

“They’ll continue to pay ROIs (return on investments) until withdrawals exceed the rate of new investment, and then run out of money all the same. One only needs to look at the collapse of MMM China for evidence of what’s to come,” BehindMLM reported.

On April 9, it revealed the implosion. “The financial apocalypse is upon us, MMM Global has collapsed,” BehindMLM published.

Mavrodi on the run

BehindMLM said Mavrodi “executed his exit strategy a few weeks ago. On March 20th Mavrodi informed investors there would be no more news updates published to the MMM Global website”.

The last message from Mavrodi stated:

“We regret to inform you that we have to close down the Republic of Bitcoin. It was an experiment, and, unfortunately, it failed,” the last Facebook entry on MMM Global states. “We turned out not to be able to pay 100% per month.”

Mavrodi has not been heard nor seen since the MMM Global Ponzi scheme collapsed, and is presumed to be hiding. “It’s highly likely he withdrew and/or transferred out as much of the money he stole from investors before fleeing,” BehindMLM added.

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