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Finweek English Edition - - THE WEEK -

MMM South Africa, the lo­cal branch of the Bit­coin-based MMM Global scheme, is be­ing in­ves­ti­gated by the SAPS’ Spe­cialised Com­mer­cial Crimes Unit for be­ing an al­leged Ponzi scheme. Ear­lier this month Rus­sian founder Sergey Mavrodi an­nounced that the MMM Global scheme had failed, and would shut down. Mavrodi has al­legedly gone into hid­ing. The SA plat­form in­vited mem­bers to do­nate money in re­turn for

Bit­coin cur­rency, and claimed a 30% re­turn on in­vest­ments monthly. A Ponzi scheme oc­curs when an an­nual re­turn is 20% higher than the repo rate, which

is cur­rently 7% in SA. At the time of go­ing to print, it was re­ported that South African mem­bers al­legedly said that

their ac­counts had been frozen.

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