The MMM scheme is collapsing as we speak – steer clear
Part of Sergei Mavrodi’s MMM Global scheme was the Republic of Bitcoin. The Republic of Bitcoin has now officially gone bust.
In short it reached the point where there were more investors trying to cash out their ‘profits’ than new ones coming in providing more funds.
The scheme couldn’t go on any longer and folded.
The last Facebook entry on MMM Global Republic of Bitcoin states
: “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 be able to pay 100% per month.”
The MMM Global scam in South Africa is still running though. According to what I’ve seen on its Facebook page it is still actively recruiting and there are still many investors trying to jump in on this sinking boat.
The Hawks are investigating MMM Global – at last
The South African authorities have been way too slow to investigate the matter. But it seems like the Hawks are at last investigating the matter.
According to Fin24 the Hawks probe into MMM “is a priority, because we have to protect the inhabitants of this country”
and “anybody who breaks the law, we (the Hawks) will go after them. Simple as that.”
The tax man might come after you if you’re participating in this scheme
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there’s reason to believe that the South Africa Revenue Service (SARS) will come after MMM Global Investors.
You see, according to the Income Tax Act, people are allowed to donate up to R100 000 tax-free in a tax year. The moment you exceed R100 000 in cumulative donations per year – which could be made to a single or multiple individuals – you become liable to pay 20% tax on donations made over and above that.
But here’s the kicker – if you’ve just joined MMM Global and you haven’t made that much in donations you can still land yourself in trouble…
The person liable for donations tax is ordinarily the donor. If the donor does not pay the tax within three months of making the donation, however, then both the donor and the beneficiary become jointly and severally liable for the tax.
So you might be a newly joined participant in MMM Global. But you receive cash from someone that’s donated more than R100,000 for the year. If they don’t pay SARS the 20%, SARS can actually come after you in search for the 20% tax on the donation you’ve received!
Don’t put yourself under fire - stick to regulated investments
The allure of 30% or 100% returns in a single month is massive.
But they’re just not consistently sustainable.
In no way am I saying that people who’ve made money from MMM Global are lying. They probably have.
Most early participants in pyramid schemes make lots of money.
Today, on behalf of our Board of Governors,
I’d like to invite you to join The South African Investor
Our aim is, quite simply, to protect and expand your personal wealth through the traditional methods of making money…
However, I have to tell you upfront: at our last Executive Committee meeting, our members proposed 1,000 nominees for membership. The reality is, though, we can only accept 275 new members this year. We have to limit numbers, here's why…
But it’s a fact that these schemes simply can’t continue making these massive pay-outs for ever. At some stage there’s more money flowing out than new money coming in.
And that’s when the collapse happens. When this happens you will lose ALL your money.
It happened to MMM Global’s ‘Bitcoin Republic’. It will happen to MMM Global in South Africa too.
Don’t get swindled into this.
You will eventually lose your money.
And then you might even end up with massive tax problems as well.
Here’s to unleashing real
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