5 May AtoZForex, Vilnius — The South African (SA) MMM members are panicking after the local branch rebooted its system for development on the 30th of April. Earlier in April, it was reported that the MMM Global Ponzi scheme collapsed, while Mavrodi was on the run. Now, after the MMM reboot SA MMM members panic, after seeing a significant drop in their accounts.
The MMM community was built to provide a platform where persons could financially help each other out, through lending Bitcoins. The internal currency and point system of MMM is called Mavros. When, a person that is willing to provide financial support, they are promised to get in return 30% to 40% per month on their Mavros account.
According to the Directorate for Priority Crime Investigation (Hawks) and other financial experts, this business model is flagged as a Ponzi scheme. At the moment the Hawks are still investigating the MMM community. More importantly, the MMM community is not regulated by any local regulator nor the South African Reserve Bank (SARB). Hence, investors on this platform are at risk of not being able to retrieve their funds after it gets lost.
Why SA MMM members panic?
It is on this given fact that there is the possibility to lose all money, the SA MMM members panic. Especially, after their accounts got frozen and the Mavros points system was reset in April. According to various SA MMM members on social media, concerns were voiced about having lost thousands of rands.
One of the SA MMM members claims to have lost 30,000 mavros after the last time he checked his account, which is equivalent to 30,000 rands. Whereas, other SA MMM members panic and stated that:
“Something is not right. What’s going on? Where is our money? My dashboard is wiped clean.”
MMM SA responds to media panic
MMM SA clarified that there was no other choice than to reboot the MMM system on the 30th of April. Yet, according to the anonymous leaders of MMM the media is to blame for the SA MMM members panic. As one of the suspicions was that there was not enough new money entering in the alleged Ponzi scheme. In response to the lowered funds in the accounts of the SA MMM members, the organization told that:
“Through the development of the system we will send 10% of total input to pay back the ‘old’ mavros. According to the experience of other countries, we can definitely say that in the normal course of events all the old mavros debts will be paid off in about six months. We will quickly pay off ‘old’ mavro debts, no doubt about it. You just have to wait.”
Building further on this, MMM SA told its members that all of the mavros of before the restart are now considered as “old mavros”. The old mavros cannot be used anymore at this state, only the new mavros are eligible for operations.
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