Cape Town - While MMM confirmed that its electronic currency Bitcoin exchange had collapsed, South African participants, in what has been dubbed a Ponzi scheme, said they would continue to invest their money, confident they would receive a 30 percent return.
MMM was started by convicted Russian scammer Sergey Mavrodi in the former Soviet Union in the late 1980s. He would replicate the formula in other countries, moving his operation online and eventually launching in South Africa in August last year.
With news of MMM’s troubles filtering through slowly on Tuesday, a Nigerian who runs the scheme’s office at Cape Town train station said the news did not leave him concerned.
“There’s nothing illegal about it, this is like a stokvel… If you’ve got spare money to invest, you can get 30 percent of that money at the end of 31 days,” he said.
http://www.iol.co.za/news/south-africa/western-cape/ponzi-mmm-still-strong-after-bitcoin-collapse-2009140
