Ponzi scheme MMM, which has had a chequered history in Nigeria, has once again suspended its operations. Operators of the scheme made this known in a statement released recently. MMM had earlier shut down in December 2016, before resuming in January this year. Returns due 2016, would however be paid in batches. MMM, then went on a partial pause in July. perhaps as a means of staying afloat, the scheme commenced repayment of participants that had invested in August, and gave assurances it would pay arrears of previous months.
Why is the scheme ‘restarting’ ?
According to the statement, the scheme was restarting due to its inability to recover from the crisis triggered by the monetary authorities in Nigeria, as well as the mass media.
The Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) had warned Nigerians severally on the dangers of MMM, which they referred to as a Ponzi scheme, leading to a mass withdrawal of funds.
What does the ‘restart mean’ ?
All Mavros acquired before the announcement will be frozen. Mavros acquired after the announcement will have no restrictions. A Mavro is a unit of currency used in the scheme. Operators of the scheme have also introduced several modifications:
- Mavros will now start growing at the moment the request is confirmed (not at the moment it is created, as it was previously).
- Consequently, bonuses will start growing at the moment when the main contribution is confirmed (upon which bonuses have been rewarded on).
- Mavro-50% for the first contribution will not be available.
- Three-month contributions of two types: 40% and 50% have been launched.