[2015-11-12] Russia Warns About MMM Collapse In China

[OmegaStarScream]

Yury Chikhanchin, the Director of the Federal Financial Monitoring Service in Russia warned about the future collapse of the MMM Pyramid Scheme of Sergei Mavrodi in China. Mr. Chikhanchin explained the risks at the conference "Risks and Challenges for the economies of the BRICS", wrote TASS.


Article : http://cointelegraph.com/news/115638/russia-warns-about-mmm-collapse-in-china

[tyz]

If this MMM ponzi schema bubble bust then we will see a big negative impact on Bitcoin regarding price and reputation. It will negatively covered by media word wide.

[gogxmagog]

Aren't these things illegal? If you did the same thing with fiat you would get locked up.

[RustyNomad]

MMM company founded by Mavrodi has been recognized as one of the largest pyramid schemes in Russia. According to experts it had about 10-15 million depositors in 1989-1994. After the company's collapse in February 1994, at least 50 people who deposited their money in MMM have committed suicide. The investigation recognized more than 10 thousand people to be the victims of this Ponzi scheme company, but according to some experts the number of defrauded investors is actually closer to 10 million.

Mavrodi tried to escape the investigation but was caught in Moscow with a fake ID and arrested in January 2003. In April 2007, the court found him guilty of fraud and sentenced him to 4.5 years in prison.

This is not going to end well for the 'investors', there's going to be another couple of million who will never see their hard earned funds again and most probably another couple who will commit suicide as before.

So this guy is hardly out of prison and he's running a similar pyramid scheme as before yet it seems this time round nobody is doing anything about it. They are most probably waiting for it to implode first before they rush to the 'rescue'.

[Kakmakr]

The worst thing is, they are targeting the poor and mostly uneducated 3rd world countries, like : Indonesia, South Africa, India, Bangladesh, and Ukraine.

The exchanges and wallet providers should post warnings on their webpages against this Ponzi scheme to make people aware of this. If they allow this, they will suffer from this too, when this Ponzi scheme collapse.

This just shows you, when greed takes over, all logical judgement goes out the back door.  This will hurt everyone involved with Bitcoin, when this goes down. 

[Denker]

MMM company founded by Mavrodi has been recognized as one of the largest pyramid schemes in Russia. According to experts it had about 10-15 million depositors in 1989-1994. After the company's collapse in February 1994, at least 50 people who deposited their money in MMM have committed suicide. The investigation recognized more than 10 thousand people to be the victims of this Ponzi scheme company, but according to some experts the number of defrauded investors is actually closer to 10 million.

Mavrodi tried to escape the investigation but was caught in Moscow with a fake ID and arrested in January 2003. In April 2007, the court found him guilty of fraud and sentenced him to 4.5 years in prison.

This is not going to end well for the 'investors', there's going to be another couple of million who will never see their hard earned funds again and most probably another couple who will commit suicide as before.

So this guy is hardly out of prison and he's running a similar pyramid scheme as before yet it seems this time round nobody is doing anything about it. They are most probably waiting for it to implode first before they rush to the 'rescue'.

This sounds weird but maybe a few persons behind the curtain just let it happen to be able to blame Bitcoin when this mess explodes.Imagine the negative impact this could have when mainstream medias all around the countries say that these people used Bitcoin and lost everything.
We here all know that this would be a stupid statement because this shit happened with fiat a thousand times, but the point here is the chance to harm again the image of Bitcoin.And the average joe out there will believe that because they are like stupid lemmings.

[botany]

Aren't these things illegal? If you did the same thing with fiat you would get locked up.

These kind of scams do happen with fiat as well. It depends on the robustness of the legal system - you might get locked up as soon as you launch the scheme, immediately after investors get scammed or after 10 years of legal proceedings. In some cases, you might get away scot free.

MMM seems to be smartly operating in countries like China, India and Bangladesh.
 

[Kprawn]

I agree, the question is .... Why are they looking the other way, and allowing for this to grow as big as it's growing already. Sergei Mavrodi  has been convicted and jailed for this

and he is allowed to do this again. He says, he wants this to grow and then threaten the fiat system, but this will just strengthen the fiat system when his Ponzi implode. What is

the logic behind that? It's all a lie. MMM is a Ponzi and it's threatening Bitcoin. 

[lemipawa]

I agree, the question is .... Why are they looking the other way, and allowing for this to grow as big as it's growing already. Sergei Mavrodi  has been convicted and jailed for this

and he is allowed to do this again. He says, he wants this to grow and then threaten the fiat system, but this will just strengthen the fiat system when his Ponzi implode. What is

the logic behind that? It's all a lie. MMM is a Ponzi and it's threatening Bitcoin. 

They are not looking the other way, they know the right way, they just decided to go to that direction because that's what brings food to their table, another is they we're like brainwashed about MMM. Imagine they made people to believe that the investment they made in MMM is to help other's while in fact, it's just someone who want's to cash out from their investment.