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.