Just yesterday, the Securities and Exchange Commission (SEC), warned the public on the activities of some online investment scheme currently making waves tagged ‘MMM Federal
Republic of Nigeria. MMM Nigeria was launched in 2016 primarily targeting
the Nigerian audience.Republic of Nigeria. MMM Nigeria was launched in 2016 primarily targeting
According to SEC, the promoters of the scheme carry out their business activities via Nigeria.mmm.net portal/platform, and are promising investors a monthly investment return of 30 per cent.
SEC said the venture had no tangible business model, describing it as a Ponzi scheme, where returns would be paid from other peoples’ invested funds.
The notice on SEC’s website thus read, “The attention of SEC, Nigeria has been drawn to the activities of an online investment scheme tagged ‘MMM Federal Republic of Nigeria (nigeria.mmm.net). The platform has embarked on an aggressive online media campaign to lure the investing public to participate in what it called ‘mutual aid financial network’ with a monthly investment return of 30 per cent.
“The commission hereby notifies the investing public that the operation of this investment scheme has no tangible business model hence it’s a Ponzi Scheme, where returns are paid from other people’s invested sum. Also, its operation is not registered by the Commission.”
SEC, therefore, advised the general public to be wary of the online scheme, adding that anyone that subscribes to this illegal activity does so at his/her own risk.
“The commission hereby notifies the investing public that the operation of this investment scheme has no tangible business model hence it’s a Ponzi Scheme, where returns are paid from other people’s invested sum. Also, its operation is not registered by the Commission.”
SEC, therefore, advised the general public to be wary of the online scheme, adding that anyone that subscribes to this illegal activity does so at his/her own risk.
We therefore bring you some facts about MMM and how it came into existence.
Origin of MMM
МММ global was a Russian company that perpetrated one of the world’s largest Ponzi schemes of all time, in the 1990s. By different estimates from 5 to 40 million people lost up to $10 billion.
The original MMM was set up by Sergey Mavrodi, his brother Vyacheslav Mavrodi, and Olga Melnikova in 1989. The name of the company was taken from the first letters of the three founders’ surnames.It morphed into a Ponzi scheme around 1994, primarily based out of Russia which resulted in Mavrodi, a former Russian parliamentarian, being jailed for fraud for running it.
The current MMM Bitcoin version emerged in around 2011 following Mavrodi’s release from prison, and follows the same Ponzi structure as the original.
What is a Ponzi scheme
A Ponzi scheme is an illegal or fradulent investment scheme where the person or organization running it pays returns to existing investors from capital paid into it by new investors, rather than profit actually earned by the company itself.
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