The Financial Sector Conduct Authority (FSCA) has issued a cautionary statement to the public, advising them to exercise caution regarding MMM Krypto.
The scheme, originating from Russia, promises returns of 24-36% per month.
MMM Krypto is a rebranded version of MMM Global, which successfully attracted millions of individuals across Africa in recent years. It gained notoriety as one of the largest ponzi schemes of the 1990s operating by using funds from new investors to fulfill payouts to earlier participants.
“MMM is a Global Mutual Aid Fund, World people’s Bank, Financial Social Network — or any definition whatsoever. The point is not in the title. The bottom line is that this is a voluntary informal association of millions and millions of people throughout the Earth, rebelled against the financial slavery, chose to declare war against the Fed and banks.”
– MMM Krypto Website
The MMM Krypto scheme presents itself as a form of assistance by providing loans when needed, claiming to function as a peer-to-peer lending bank.
“It has come to the attention of the FSCA that MMM Krypto might be rendering financial services to members of the public in South Africa,” says the FSCA in a statement.
“The scheme uses social media and a referral system to encourage people to join, along with promises of returns of between 24% and 36% a month.
The FSCA is concerned about the unrealistic monthly returns offered to members of the public in South Africa.”
Without commenting on the business of MMM Krypto, the FSCA points out that offering financial products or services in South Africa requires authorisation by the FSCA.
“MMM Krypto is not licensed under any financial sector law to provide financial products or financial services in South Africa. MMM Krypto was not available for comment,” says the FSCA.
MMM Krypto was established in Russia in 1989 by brothers Sergei and Vyacheslav Mavrodi, along with Olga Melnikova. The company’s name, MMM, is derived from the initials of the three founders’ surnames.
The FSCA has forwarded the MMM Krypto case to the National Consumer Commission for additional scrutiny.
FSCA, which recently warned the public against another scheme, Matrix, recommends that individuals verify whether a firm offering financial products and services holds the necessary license to operate. It also suggests checking the scope of advice authorized by the financial services provider’s (FSP) license.
🇿🇦 NOTICE ABOUT 'IMMEDIATE MATRIX' IN SOUTH AFRICA 🇿🇦
South Africa’s Financial Sector Conduct Authority (FSCA) has warned the public to exercise caution when engaging with a company named Immediate Matrix.
The company allegedly publishes false marketing information through… pic.twitter.com/uQjTLmmIpj
— BitKE (@BitcoinKE) January 4, 2024
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