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
See what a friend said about the death of MMM founder; Sergey Mavrodi, who died of heart attack at age 62. pic.twitter.com/P5lf5NZdnA
— Opobo Merchant (@HCookey) March 26, 2018
https://twitter.com/no_rookie/status/978237774892544001
I will collect my money from him when I get to heaven
— Sakanelli (@sakanelli) March 26, 2018
https://twitter.com/newscantell/status/978276255991848961