The world woke up yesterday to learned of the death of Sergey Mavrodi, the founder of MMM, a Russian company that ran one of the world’s largest Ponzi schemes. He was aged 62.

Mavrodi was reportedly taken to a city hospital from a bus stop overnight Monday, March 26, after he felt weakness and pain in the chest area.

“THE EMERGENCY TEAM HAS FAILED TO SAVE HIS LIFE. HE DIED THIS MORNING,” THE REPORT SAID.

Sergei Mavrodi created the company “MMM” in 1992. It quickly gained popularity and became the largest financial pyramid in the history of Russia.

The financial pyramid was a typical Ponzi scheme in which earlier investors receive their profits from subsequent investors.

He promised returns of 20 percent to 75 percent a month, as well as lotteries and bonuses for investors.

But when the number of new clients stopped growing, the pyramid collapsed, causing huge financial losses to at least 10 million people. An estimated 3 million Nigerians, according to the Nigerian Deposit Insurance Corporation (NDIC) fell victim to the ponzi.

The scheme under the MMM brand was launched in India, China, South Africa, Zimbabwe, and Nigeria. In many of those countries, Mavrodi’s operations were subsequently shut down or suspended.

MMM in December last year, had hinted at plans to launch its own cryptocurrency, called the Mavro.

Reactions by Nigerians on social media

Recall that many Nigerians fell victim of the MMM pyramid scheme, many have come out to express their reactions to the passage of the Ex Russian Lawmaker

Fikayo has a degree in computer science with economics from Obafemi Awolowo University. ITIL v3 in IT service management. An alumnus of Daystar Leadership Academy. Prior to joining Nairametrics had stinct in Project management, Telecommunications among others. Also training in Consulting and Investment banking from Edubridge Academy. He has very keen interest in Politics, Agri-business, private equity and global economics. He loves travelling and watching football. You can contact him via fikayo.owoeye@nairametrics.com

1 COMMENT

  1. More death are coming to those who know the whereabout of our money. Unless they release it to us,they are on generational curse that will be killing them from the head to the last.

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