Capitec Bank Closes 2000 Bank Accounts Linked To MMM Ponzi Scheme


Capitec bank announced that it has closed down 2000 bank accounts that are linked to the alleged MMM Ponzi scheme.

Though this move by the bank did not go down well with some of the customers, the CEO of Capitec Bank Gerrie Fourie revealed during an interview on Friday that the accounts were actually closed to protect the bank’s clients.

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“We actually closed over 2 000 accounts that (were) involved in the scheme. Some of the clients became extremely violent and we had to bring in security guards,” Fourie said.

The MMM Ponzi scheme has made the headlines a lot recently.

Fourie also said that after the scheme was revealed to the bank, the MMM accounts were kept under close watch and were later frozen in early 2015.

The founder of the scheme Sergey Mavrodi announced on social media that MMM Global scheme was shutting down because of some irregularities that could not allow it to pay out the benefits.

“We regret to inform you that we have to close down the Republic of Bitcoin. It was an experiment, and, unfortunately, it failed,” MMM Global posted on Facebook. “We turned out not to be able to pay 100% per month.”

Hawks spokesman Brigadier Hangwani Mulaudzi revealed that MMM South Africa happened to be one of the companies that are being investigated by the SA Police Service Specialized Commercial Crimes Unit in the bid to ascertain if they contravened the Consumer Protection Act.

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in his analysis, CEO Actuarial Society of SA Mike McDougall said: ” It can be stated with absolute certainty that these schemes will eventually collapse, leaving many people financially destitute, while only the founders and a few early participants make considerable gains .”

71 schemes has been closed by the regulator since 2011.