Well, that didn’t take long.

Just shy of a month after
MMM Global collapsed
, the local South African chapter has gone under.

As at the time of publication invested funds, along with withdrawal requests, have been “frozen”.

Not surprisingly, the reason for the freeze is a lack of new investment into the scheme.

The South African arm of MMM Global Republic of Bitcoin has frozen its members’ money – but is urging them to deposit new funds and recruit more members to “restart” the system.

Existing investors are seemingly only half-able to grasp the mechanics of a Ponzi scheme.

Posts on the organisation’s Facebook page blame media attention in the scheme that caused fewer people to join up or contribute to it, creating an “imbalance” that made it impossible to pay members out.

It is true that no new investment in a Ponzi scheme will cause it to collapse. However what “media attention” was directed at MMM Global pertained to its own collapse, due to withdrawals exceeding the rate of new investment.

But hey, why let reality get in the way of Facebook rants.

The “solution” MMM South Africa have come up with is to
relaunch the scheme
with “New Mavros”.

It’s basically 
the same thing
, only 10% of newly invested funds will be used to pay off existing MMM South Africa investors who have had funds frozen.

And that’s on top of the 10% MMM South Africa was
already
 diverting to investors who lost money in MMM Global’s collapse.

Ponzi-ception anyone?

According to information from the Facebook page, new deposits will be frozen for 14 days, after which members will be able to request withdrawals from the system.

I predicted the collapse of local MMM Global local chapters after the main scheme went bust. My prediction here is MMM South Africa aren’t going to receive anywhere near the amount they need to restart the scheme over the next fortnight.

New investment is basically dead, so their demographic is existing investors. Most of which aren’t going to be willing to deposit more given they believe they’re already owed so much (even if most of it is just pie-in-the-sky monopoly money that doesn’t exist).

MMM members have voiced their concern on social media, with one claiming he is set to lose R30 000.

Facebook user BM Abinet
said the last time he checked he had 35 798 mavros (which is equivalent to the rand currency), “but now the system says my old mavros is 5 798, so where’s my R30 000?”

In a somewhat hilarious turn of events, around the same time MMM South Africa collapsed last week, an investor ‘
filed an application in the North Gauteng High Court
against the commissioner of the National Consumer Commission (NCC)
‘.

The investor who filed the application, Deon Janse van Rensburg,

wants the court to declare that the MMM format is legitimate and does not have the characteristics of a Ponzi, pyramid, multiplication or chain-letter scheme.

What with MMM South Africa collapsing due to a lack of newly invested funds, best of luck with th

🤖 Quick Answer

What happened to the South African MMM Global chapter?
The South African branch of MMM Global collapsed approximately one month after the parent organization's failure, freezing all invested funds and withdrawal requests due to insufficient new investments entering the scheme.

Why did the South African MMM freeze member funds?
The organization froze funds because of an investment imbalance caused by reduced recruitment and contributions, making it impossible to process member withdrawals without continuous influx of new capital from recruits.

How did MMM South Africa respond to the crisis?
Despite freezing assets, MMM urged existing members to deposit additional funds and recruit new participants to "restart" the system, maintaining the characteristic structure of pyramid scheme operations.

What explanation did MMM provide for the collapse?
The organization blamed media coverage for discouraging new recruitment and investment contributions, claiming negative publicity created an unsustainable financial imbalance within the scheme's operations.

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