The notorious Ponzi scheme MMM Global is apparently closing down its Bitcoin project named “Republic of Bitcoin”, admitting that paying back 100 % interest per month has turned out to be impossible.

This was an experiment, and it hasn’t been a success, reads the announcement of the organization.

Stating quite clearly that the enormous 100% interest per month will no longer be available, MMM Global remains rather vague on whether its investors are to receive anything at all.

On the one hand, the organization claims that it is still able to pay a 30% interest monthly. On the other hand, it states in the very same document that the Republic of Bitcoin project is over.

The announcement hints that 10% of the system’s income will be spent on refunding those who have invested their bitcoins. Still the company makes it clear that any operations with bitcoins invested into the “Republic” are currently impossible.

In the meantime, the bitcoins of the participants are to be transferred to the MMM-structures of the countries where the clients live, reads the announcement. If there is no such structure in a country yet, one is expected to be established within two weeks. The statement is accompanied by a vague promise that the money will be paid back to the participants as the country in which the client lives develops.

Apparently, the investors are not going to see their money any more.

Earlier MMM claimed it had chosen bitcoins because of the international scope of its activities, the cryptocurrency being the easiest and the most convenient way to transfer money without employing intermediary financial structures. The disruptive nature of bitcoin also suited well the revolutionary rhetoric of the company.

The founder and the head of MMM Sergei Mavrodi used to say that his organization accounted for a large part of bitcoin transactions worldwide, influencing the value of the digital currency. Regardless of the exchange rate, MMM’s closing down its cryptocurrency programme might be good for the reputation of bitcoin, as the cryptocurrency will not be associated with a worldwide scam anymore.

In 1989-1995 Sergei Mavrodi operated a Ponzi scheme in Russia, getting millions of people involved and later receiving 4.5 years in jail for the financial fraud. Having served his term, Mavrodi launched MMM pyramids internationally. His organization has been officially banned in China, but currently is gaining popularity in Nigeria.





Andrew Levich