The resurgence of schemes inspired by Sergei Mavrodi’s infamous MMM pyramid is becoming increasingly evident in India, where many shady and unregistered organizations have adopted his model. Notably, TRUNOMIC, formerly known as Elite Forum World, has launched a cryptocurrency coin to further its fraudulent activities. Marketed as a revolutionary investment opportunity, TRUNOMIC is, in reality, a classic rug-pull scam designed to defraud unsuspecting investors. This sophisticated scam has so far evaded the scrutiny of Indian financial crime authorities, raising urgent questions about regulatory oversight.
Sergei Mavrodi’s MMM, created in 1989, promised extraordinary returns by using the investments of new participants to pay earlier investors. This unsustainable model eventually led to financial ruin for millions and Mavrodi’s imprisonment for fraud. Despite his death in 2018, Mavrodi’s fraudulent blueprint continues to inspire modern scams, including those in India.
In India, Mavrodi’s model has been adopted by numerous shady and unregistered organizations, such as MMM India, P2P, and Elite Forum World, to name a few. These organizations have rebranded this type of Ponzi scheme as the ‘Gift Plan.’ The Gift Plan operates under the guise of mutual aid and gifting, promising high returns with minimal risk. However, the core mechanics remain the same: the scheme relies on recruiting new participants to pay earlier investors, leading to inevitable collapse and significant financial losses for most participants.
The Elite Forum World originated in Punjab, India. Due to the negligence of authorities, the scam grew larger and rebranded itself as the ‘TRUNOMIC Community.’ Before becoming Elite Forum World, it was known as the P2P Community. This pattern of rebranding is a common tactic among fraudulent schemes to evade detection and continue their operations under new names.
The parallels between TRUNOMIC and Mavrodi’s MMM are striking. Both schemes rely on attracting a large number of participants with promises of high returns, only to collapse once the flow of new investments slows down. TRUNOMIC’s use of cryptocurrency adds a layer of complexity, making it harder for victims to trace their funds and hold the perpetrators accountable.
What is particularly troubling is the apparent inaction from Indian financial crime authorities. Despite clear warning signs, authorities have either not recognized the scam or are deliberately turning a blind eye. This negligence allows TRUNOMIC to operate openly, exploiting new victims and perpetuating its fraudulent activities.
Investors who have fallen victim to TRUNOMIC’s scam have shared harrowing stories of financial ruin. One investor recounted, “I was promised substantial returns on my investment in TRUNOMIC’s cryptocurrency. Initially, I saw some profits, which encouraged me to invest more. However, when I tried to withdraw my funds, I realized that I could not withdraw.” These stories mirror the experiences of those who lost their savings to Mavrodi’s MMM, highlighting the devastating impact of such scams.
The cryptocurrency aspect of TRUNOMIC’s operation is particularly insidious. Blockchain technology creates an illusion of legitimacy and innovation, making it difficult for investors to distinguish between genuine opportunities and scams. The anonymity of cryptocurrency transactions further benefits the scammers, allowing them to disappear without a trace once the scheme collapses.
It is imperative for potential investors to exercise extreme caution and conduct thorough research before investing in any cryptocurrency or MLM scheme. The promise of high returns with minimal risk is a classic red flag. Investors should seek out independent advice and verify the legitimacy of any investment opportunity.
The proliferation of schemes like TRUNOMIC underscores the urgent need for robust regulatory frameworks and proactive enforcement. Authorities must prioritize investor protection and take swift action against fraudulent enterprises. This includes monitoring emerging technologies like cryptocurrency, which are increasingly being exploited by scammers.
Authorities are urged to investigate TRUNOMIC and other similar entities rigorously. The parallels to Mavrodi’s MMM are too significant to ignore, and the risk to the public is too great. Financial crime regulators must act decisively to dismantle these operations, prevent further financial harm, and restore public trust in the regulatory system.
TRUNOMIC represents a modern incarnation of Mavrodi’s MMM pyramid scheme, using cryptocurrency to attract and exploit unsuspecting investors. The lack of action from Indian financial crime authorities is a grave concern that needs immediate address. As these scams continue to evolve, it is critical for potential investors to remain vigilant and for authorities to take urgent action to prevent further financial destruction.
