In a statement, the FCSA said it had come to its attention that MMM Krypto might be rendering financial services to members of the public in South Africa. Picture: Independent Newspapers.
The Financial Sector Conduct Authority (FSCA) has warned the public to exercise caution when participating in MMM Krypto’s mutual aid fund (MMM Krypto).
In a statement, the FCSA said it had come to its attention that MMM Krypto might be rendering financial services to members of the public in South Africa.
According to the FCSA, MMM Krypto uses social media platforms and places videos on YouTube, TikTok, and Facebook and referrals to encourage members of the public to participate in MMM Krypto’s scheme.
“MMM Krypto promises its participants returns of between 24% and 36% per month. The FSCA is concerned about the unrealistic monthly returns offered to members of the public in South Africa.
“Without commenting on the business of MMM Krypto, the FSCA points out that offering financial products or services in South Africa requires authorisation by the FSCA,” it said.
The FCSA said MMM Krypto is not licensed under any financial sector law to provide financial products or financial services in South Africa. MMM Krypto was not available for comment.
“The FSCA has referred the MMM Krypto to the National Consumer Commission for further investigation. Members of the public should always check: that an entity or individual is authorised by the FSCA to provide financial products and services, including for giving recommendations about how to invest; what category of advice the person or entity is registered to provide, as there are instances where companies or people are registered to provide basic advice for a low-risk product and then offer advice on far more complex and risky products,” it said.
Reports have suggested that MMM, a notorious Ponzi scheme, had rebranded as MMM Krypto.
The internet-based Ponzi scheme, MMM, made headlines in 2016 as some of its members had their bank accounts frozen by various banks on suspicion that they were participating in a Ponzi scheme.
MMM was launched in Russia by the late Sergei Mavrodi in 1994. The scheme promised annual returns of up to 3 000%. After Mavrodi's death, the scheme officially declared its closure.
PERSONAL FINANCE