The local Facebook account of MMM Global is still urging existing users to stay active, and is signing up new users to the scheme. This is despite the global operation having crashed, and the local community being under investigation as a possible Ponzi scheme.
MMM Global Republic of Bitcoin has closed its doors, unable to pay out the fantastic returns it promised to investors. The scheme had lured investors with promises of 100% returns and was unable to meet these commitments.
However, the South African arm of the operation still appears to be operating. Although it’s promising returns of 30% rather than 100%, this is still higher than the 27% allowed by South African law to prevent it being classified as a Ponzi scheme.
The scheme is based on a bitcoin currency called Mavros, and describes itself as a “kind of global fund of mutual aid” that aims to “destroy the world’s unjust financial system”.
“MMM is a community of people providing each other financial help on the principle of gratuitousness, reciprocity and benevolence,” its web site reads. “In MMM you don’t have to make contracts or pledge your property. In MMM there are no lenders and no debtors. Everything is very simple: one participant asks for help – another one helps.”
The global organisation ceased to trade last week, posting this message to community members: “We regret to inform you that we have to close down the Republic of Bitcoin. It was an experiment, and, unfortunately, it failed. We turned out not to be able to pay 100% per month.”
Yesterday the Facebook post for the local operation accused the media of pulling a publicity stunt to “tarnish and label MMM as a falling scam”.
It went on to say that a radio interview on Tuesday led to the registration of a number of new users.