Netizens Wary Over Popular Ponzi Scheme Comeback As MMM Krypto In South Africa

Mavrodi Mondial Moneybox (MMM), a popular Ponzi scheme which swept across Africa, with branches promising returns on investment of 30 per cent a month in South Africa, Zimbabwe, Nigeria and some East African countries is attempting to make a comeback as MMM Krypto.

Information seen on a flyer revealed that MMM Krypto held a recent event on December 2, 2023, in Durban, South Africa.

While advertising itself on its website as a “Worldwide Mutual Aid Fund, a Financial Social Network, or a World People’s Bank”, MMM Krypto now shamelessly targets an international audience.

An estimated three million Nigerians lost N18 billion to MMM, the Nigerian Deposit Insurance Corporation (NDIC) revealed in 2017.

In 2017, one of the many victims of MMM’s Ponzi scheme, Ada Kole, reportedly committed suicide in Kubwa, a satellite town in the Federal Capital Territory (FCT). He reportedly consumed insecticide following the crash of MMM after he invested N750,000 shortly before his wedding.

Over 2.7 million Nigerians were reportedly scammed of over N80 billion by another Ponzi scheme, which claimed to be a Nigerian arm of a UK-based company, BBH Global.

In 2018, MMM had announced that it was closing down after the death of its founder, Sergei Mavrodi.

Mavrodi died in March after suffering from a heart attack.

The scheme wrote on its website “After much deliberation, we have made the conclusion that continuing the system operation, without our leader and ideological inspirer, is impossible and makes no sense.

“We respect him immeasurably and cannot afford to allow that our unskilled actions may cause profanation of his concepts. In view of the above, with deep sadness, we have to announce the ultimate and irreversible MMM closure.”

However, as photos from MMM Krypto’s event in South Africa surfaced online, netizens were not only shocked but wary about its possible dangers.

Reacting to MMM’s comeback, an X user @ChikwanhaAllan wrote: “I’m offended they wanna implicate crypto in their scam.”

Another X user, @blessingdivirim said: “There are new students who need to be schooled by the MMM school …interested students can enrol but it’s tears at graduation.”

While describing it as a scam, a Johannesburg-based X user, @Rayzofficial1 recounted losing R20000 in 2016.

“MMM is back ???????? Don’t even think of trying it oooo”, an X user @OtunbaIcon001 warned.

In the same vein, a South African @Bonisile_RMS lamented “The difficulty with warning your aunts and uncles about MMM and other pyramid schemes is that they will just do it behind your back. They will just think you are jealous because you want your father to be the only one driving a Hardbody.”

Although MMM Krypto claims to be a voluntary informal association made up of millions of people globally who have declared “war against the banks and the Fed to kick against financial slavery”, it issues a warning on its website saying “there are no guarantees and promises! Neither explicit nor implicit. There are neither investments nor business! Participants help each other, sending each other money directly and without intermediaries.”

How To Prevent Yourself From Falling Victim To Ponzi Schemes:

1. Thoroughly investigate every investment option, including the background of the organisation or individual offering it.

2. Check Registration: The Central Bank of Nigeria (CBN) warns against depositing money in any institution that is not insured by the Nigeria Deposit Insurance Corporation (NDIC).

3. Don’t succumb to Pressure: Be wary if you feel pressured to make a rapid investment or to attract others, it’s usually a sign of investment fraud.

4. Seek Professional Advice: Before investing, speak with a reputable financial counsellor or a lawyer