South Africa – Thousands of MMM Global participants across the country are anxious about losing their investments following the network’s announcement last week that it was shutting down one of its schemes, known as the Republic of Bitcoin (RB).
MMM Global, which describes itself as a social financial network, announced on its Facebook page on Saturday that the RB, which offered monthly returns of 100%, was an experiment and it failed. “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 able to pay 100% per month,” MMM wrote.
Following this announcement, several news outlets reported that the MMM Global Ponzi scheme had collapsed, giving the impression that all its programmes had closed. However, it appears that this is not the case. Apparently, only the RB was closed. The other programme, which pays 30% monthly, is still being offered. A number of South Africans participating in it said it was business as usual for them.
However, the shutdown of the Republic of Bitcoin may be a harbinger of the collapse of the MMM network in its entirety in the near future. According to financial experts, MMM’s business model resembles that of a classic Ponzi scheme, and Ponzi schemes always collapse at some point.
According to the Consumer Protection Act, it is against the law to participate in a Ponzi scheme, which is described as any investment scheme that promises returns at least 20% above the repo rate (7%). Despite this, MMM members continue to defend and vouch for the scheme, saying it is not illegal.
The South African branch of MMM is currently being investigated by the Hawks.
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