Crackdown On The MMM Scam

The MMM global cash gifting/Ponzi scheme crashed some time ago. The sad reality is that it just moved from a global scam to a country by country scam. It lowered its rate of return from 100% per month to 30% per month.  The scam is the same.

Dear participants!

We regret to inform you that we have to close down the Republic of Bitcoin. It was an experiment, and, unfortunately, it failed. We turned out not to able to pay 100% per month.

Any money making opportunity that offers regular returns of 30% per month is a Ponzi scheme. Do not waste your time.

The problem with this type of scam is that it pays some people while it is running and this keeps people joining and supporting it.  In the end, the vast majority of people will end up losing their money when the cash gifting/Ponzi collapses.  Most governments do not act until the scam collapses because few people complain.

One country is taking action before it is too late.

The Nigerian parliament ordered a crackdown on promoters of the MMM scam.  The House of Representatives on Wednesday 11/9/2016 called on law enforcement agencies to track down promoters of MMM.  This is a very important step in letting these scammers know that it is not OK to take advantage of the people that are hard hit by an economic downturn. – Source premiumtimesng.com

MMM launched a website targeting Nigerians on 10-28-2015 . Since its launch, a massive percentage of Nigerians have invested in the scheme and more people are still joining.

Regulatory and anti-corruption agencies had earlier warned Nigerians against participating in the scheme.  This normally does not work because the representatives of this type of scam will show people stacks of cash or new cars and say you can have this too.  People in need go with what they see and do not listen to warnings.

mmm-scam-offer

Here is a video from the founders of MMM Nigeria trying to convince people it is not a scam:

The Nigerian House of Representatives understand the threat of MMM. Here are some choice comments from them:

Akinlade Fijabi from Oyo State, said the operators of MMM are exploiting the economic situation of Nigerians that had left them desperate for income through any means without considering the implications.

Enugu lawmaker, Dennis Amadi, said The House will not wait until these crooks defraud Nigerians of billions of naira or until people start committing suicide.

– Source premiumtimesng.com

In poor countries this type of scam not only takes peoples money it takes lives.  They have no way of getting all the money they invested back.  For some it is their entire life savings.

Conclusion

With the help of the internet, scams like MMM are able to spread globally very quickly.  It is very important more and more governments take an active roll in protecting their people from these scams.

For all the MMM scammers that think they are not hurting anyone. Let me break this down for you. MMM is a direct payment Ponzi scheme. For someone to get their money back someone else has to be fooled into giving them their money with a false claim of them getting a 30% return in one month. To get your 30% return others have to be fooled into giving you their money. This goes on through an endless chain of people until no more suckers can be found. When this happens the scam collapses and the huge amount of new people that joined and the people waiting to get help get nothing. Then you get a statement like the following: We regret to inform you that we have to close down MMM. It was an experiment, and, unfortunately, it failed. We turned out not to able to pay 30% per month. I am sorry you are unable to understand the scam, but this is what you are participating in. Old investors are victimizing new investors with a scam. This is not OK and it is the abuse of others and you should be ashamed of being apart of it.