Mavrodi's Endless Pyramid

The emergence and persistence of the MMM pyramid scheme, founded by Sergey Mavrodi, is a critical case study in the intersection of post-authoritarian collapse and financial exploitation. The scheme's success was rooted in a calculated abuse of the unique socioeconomic vacuum in post-Soviet Russia, masterful psychological marketing, and a structural evolution that allowed it to survive its founder.

MMM's primary incubator was the wild and turbulent end of the USSR. The transition from a state-controlled, Marxist-Leninist system - where private advertising was virtually unknown - left the population without the critical cynicism necessary to navigate complex financial promises. Citizens lacked the tolerance for advertising common in capitalist economies. Mavrodi exploited this vulnerability, positioning his scheme as an island of safety in the sea of chaos amid Russia’s debilitating hyperinflation, which reached 874% in 1993.

Mavrodi amplified this structural opportunity with compelling psychological tactics. He launched a massively popular advertising campaign featuring the fictional "everyman" Leona Galupov, who transformed the abstract concept of stock certificates into a tangible dream of upward mobility. By showing Leona progressing from buying boots to taking fancy trips, MMM used word-of-mouth advertising, as initial shareholders who reaped massive benefits became the scheme's most effective promoters. When facing charges for the original scheme, Mavrodi demonstrated remarkable political opportunism by winning a federal parliament seat to secure immunity from prosecution, temporarily dodging the court case against him.

The scheme's true resilience came from its adaptation into the decentralized MMM 2.0. Following his 2007 fraud conviction, Mavrodi conceptualized a system based on the deceptive moniker of mutual aid. This new model operated using Mavro tokens and a complex cell structure of regional bosses. Members would give help (send money) to another anonymous member, often via crypto wallets. This eliminated central bank accounts and offices, making the money flow virtually untraceable to police detectives.

By structuring transactions as peer-to-peer "gifts," MMM 2.0 presented a duplicitous narrative - it was either a mutual aid community or a high-interest investment opportunity. This structural and rhetorical adaptation allowed the network to continue operating globally even after Mavrodi's death in 2018. The fundamental mechanic remains unchanged: profit is generated not by business revenue, but by "robbing Peter to pay Paul."