Mavro Cryptocurrency To Be Relaunched By Convicted Swindler Sergey Mavrodi

Announcements, Blockchain, Crime, News | December 26, 2017 By:

Infamous Russian investor and swindler Sergey Mavrodi has announced that he is relaunching his Mavro cryptocurrency on the ethereum blockchain, scheduled for December 29.

Mavrodi said he is offering to replace “outdated” cryptocurrency with his own coin. According to its website, Mavro is a conventional unit for measurement of provided help to other participants in MMM. MMM claimed that when you provide help with bitcoins, you will get a 50% reward in 30 days, or you will get a 30% reward in 30 days when you provide help with Naira, the currency of Nigeria.

“The time for change is now! We can do a lot!! Financial apocalypse is inevitable,” Mavrodi posted on his website.

Mavrodi, a former deputy of the State Duma, is the founder of the МММ, a Russian company that perpetrated one of the world’s all-time largest Ponzi schemes. In 2007, Mavrodi was convicted in a Russian court of defrauding 10,000 investors out of 110 million rubles ($4.3 million). According to reports, most investors were aware of the fraudulent nature of the scheme, but still hoped to profit from it by withdrawing money before it collapsed.

Mavrodi claimed he is not the beneficiary of the donations and he is not used to a flamboyant lifestyle. He was later convicted of tax fraud, though he claimed that the MMM scheme is not a business, but a mutual donation program which has no law barring it. There were interviews after his release where he claimed MMM is behind the bitcoin price rally.

In 2011, Mavrodi launched a similar scheme in India, called MMM India, which strongly encouraged investors to pay in bitcoin. He also launched MMM in China. He was reported to be trying to expand his operations into Western Europe, Canada, and Latin America.

In 2015, he launched an online pyramid scheme in South Africa. Mavrodi’s scheme spread rapidly in the region, with a claimed 1% per day or 30% per month interest rate scheme and warnings from both the South African and Russian Communist Parties for people not to participate in it. In early 2016, he continued the same model in Zimbabwe (the accounts were frozen in September, 2016), and later, in Nigeria (accounts frozen in December, 2016). In January of this year, MMM Global re-emerged in all of these countries.

In November 2015, it was reported that bitcoin’s price surge was caused by a rush of Chinese people buying bitcoins to join MMM. At the time, bitcoin reached its highest price in a year as a result of the rush. Mavrodi claimed, “If I refuse using bitcoin tomorrow, it will fall down.”