Bitcoin price surge may be result of Mavrodi pyramid scheme in China

By bne IntelliNews November 6, 2015

A spike in the price of the virtual currency bitcoin may be the result of its use by a pyramid Chinese investment scheme run by convicted Russian fraudster Sergei Mavrodi, the Financial Times reported on November 5.

Bitcoin soared to its highest price in over a year on November 4 amid growing Chinese interest in MMM, a "social financial network" run by Mavrodi in China, according to the newspaper. The scheme promises 30% returns per month and runs on bitcoins.

The bitcoin price surged by over 20% to above $490 on Wednesday, the FT said.

Recent days have seen a boom in YouTube testimonials for MMM. Participants receive bonuses for providing such testimonials, according to the FT.

Mavrodi, the mathematician architect of MMM, Russia's first pyramid scheme that scammed millions of people in the early 1990s, was sentenced to 4 1/2 years in prison in Russia for fraud in 2007. He denies that MMM was fraudulent and has since launched similar schemes in Russia and other countries.

Related Articles

Egypt and Russia sign supplementary agreements to advance El-Dabaa nuclear plant

Egypt and Russia have signed a supplementary intergovernmental agreement to push forward the El-Dabaa nuclear power plant project in Egypt, Al Arabiya reported on July 8, citing a statement from ... more

Non-performing loans hit historic low in CESEE, but early warning signs emerge, says EBRD

Non-performing loans (NPLs) in central, eastern and south-eastern Europe (CESEE) fell to their lowest levels since the global financial crisis in 2024, but early indicators suggest rising risks ... more

China’s LNG imports slump for eighth month

China’s LNG imports have fallen on a year-on-year basis for the eighth consecutive month, Bloomberg reported on June 26 citing data from Kpler. Imports of the super-chilled fuel in the world’s ... more

Dismiss