We recently read about a latest high-tech bitcoin ponzi scheme operating under the name MMM Global run by Russian fraudster – Sergey Mavrodi.
He previously ran away with billions of dollars under a scheme using the same name. After serving a couple of years in prison, he is back in business with a Bitcoin Ponzi.
Marvrodi fronts his new scheme as a “Global Social Financial Network” that promotes a social-aid society. Users are required to selflessly “help” others and earn 100% per month. Such schemes have existed in the digital space, but nothing of this scale. It is gaining popularity, especially among people who previously have no or little exposure to Bitcoin, and that includes elderly that could be your parents! The site targets countries like India, Philippines, China, Malaysia and Indonesia.**** ****
Coinhako is issuing a warning to all customers that we are, in no way, affiliated with such schemes, and that investors must consider validating the entity promoting any bitcoin related investments so as to ensure its legitimacy. We recommend that everyone stay away from MMM Global, a suspected scam company being run by a known convict.
Remember to pass this warning on to warn your friends and loved ones.
Update: Reports out recently suggest that the Global MMM bitcoin ponzi scheme may have collapsed and the operators are nowhere to be found. The scheme offered investors unbelievably high returns each month, ranging from 30-100% per month. The crash and run of the bitcoin ponzi have been predicted by almost every channel.
The amount stolen is unclear. However, reports are estimating it to be in the 100 million range. This is the 3rd time the starter of the ponzi has gotten away with funds from the participants. CoinHako strongly recommends users to stay away from doubtful investment schemes, which promise “investors” high returns and instant profits.