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MMM News!

MMM (Mavrodi Mondial Moneybox) was a Russian Ponzi scheme that was launched in the 1990s and gained international attention in the early 2000s. Here are some key points about MMM:

What was MMM?

MMM was a pyramid scheme that promised investors high returns on their investments, often in the form of "dividends" or "interest" on their deposits. The scheme was founded by Sergei Mavrodi, a Russian businessman who had previously been convicted of financial crimes.

How did it work?

Investors would deposit money into MMM, and in return, they would receive a unique "Mavro" account number. The scheme claimed that the money would be invested in various ventures, such as stocks, bonds, and real estate. However, in reality, most of the money was used to pay off earlier investors, with a small portion going to the scheme's operators.

How big was it?

At its peak, MMM had millions of investors worldwide, with an estimated 10 million participants in Russia alone. The scheme was so large that it was often referred to as a "global Ponzi scheme."

What happened to MMM?

In 2011, MMM was shut down by Russian authorities, and Sergei Mavrodi was arrested and charged with fraud. However, the scheme continued to operate in other countries, including Nigeria, where it was known as "MMM Nigeria." In 2016, MMM Nigeria was also shut down by authorities.

What was the impact?

The collapse of MMM had a significant impact on many people's lives, particularly in Russia and Nigeria, where many investors had lost their life savings. The scheme was also criticized for its lack of transparency and its use of high-pressure sales tactics to recruit new investors.

Is MMM still active?

Although MMM was shut down in many countries, there are still reports of similar schemes operating under different names. However, it's important to note that these schemes are likely to be fraudulent and could result in significant financial losses.

What can we learn from MMM?

The MMM saga serves as a cautionary tale about the dangers of pyramid schemes and the importance of doing thorough research before investing in any opportunity. It also highlights the need for governments and regulatory bodies to take action to prevent and punish financial fraud.