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Brazilian company sues partner for losing business money in pyramid business with bitcoin


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A man in the small municipality of Iúna, in Espírito Santo, ended up being sued by the partners themselves after losing all investment of his marketing company that he had in Bitcoin at MMM Brasil.

The decision to invest in cryptocurrencies the investment received from other people to leverage the deal would not be a bad one if the investment was not made in the financial pyramid that ended up locking up the entire amount deposited.

It is stated in the lawsuit pending at the 1st Court of Iúna (ES) that the other two partners of the company requested compensation for losses and the dissolution of the company, as well as the removal of this partner who is the administrator of the business. There is no information on the lost value.

Judge Akel Andrade de Lima, however, in a preliminary ruling, ordered only that the partner responsible for the losses give the password of the company website to the others within 10 days under penalty of daily fine in the amount of R $ 10, limited to R $ 20,000.

From Bitcoins to the financial pyramid

The whole story started in 2015. The advertising and marketing company, with a social value of R $ 45 thousand, needed investments. They even resorted to banks, but "bank credits were denied to them as a newly created company, as well as due to the economic crisis that hit Brazil in 2015".

The way out, then, was to borrow from ordinary people. The fact, however, is that one of the company's partners thought about taking this money and investing in cryptocurrencies.

"He reports that, at the request and insistence of the requested partner, he invested the entire amount acquired with a third party in a virtual currency known as Bitcoin, as this had shown a dizzying appreciation", says the injunction.

As the other partners believed in that person's expertise, they decided to trust him “the administration of the account created for the movement of the cryptocurrency”.

Money lost in pyramid

The appreciation of the cryptocurrency made the managing partners think about selling the encrypted assets, because in this way they would have “the desired profits, as well as it would be possible to repay the loans acquired”.

It was from then on that the problem came, the partner who was in charge of the deal would have taken the cryptocurrencies sold and applied the whole amount in a company called MMM Brasil, "who later discovered that it was a financial pyramid".

"The requested partner began to behave in a strange way, as he refused to be accountable to society about the movement of bitcoins".

Everything they had managed to run the company and at the same time give back to creditors had gone down the drain. The platform blocked all the value contributed by the partner of the unsuspecting advertising and marketing company.

Loss without size

The other partners felt betrayed. For them, this conduct was “unfair and dishonest for the requested partner, and made the expected earnings from the valuation of bitcoins unfeasible, but also hampered the development of their business activity”.

Despite the fact that the judge did not accept the request to remove the partner from the company, he argued that the partner's action was disastrous.

“In the face of having practiced acts that violate probity, loyalty and good faith, acts that have caused disastrous consequences for the business society”.

In the magistrate's view, this could have motivated the end of society. However, he denied the request for early relief because the decision in this case would be of merit, which can only be taken after the broad defense and contradiction.

“Generally speaking, the managing partners, who represent the plaintiff, point out that the defendant, with his acts, broke the affectio societatis, which is why they are pushing for the suspension of their partner powers. I understand that this request is confused with merit, which is why I reject it now ”.

How MMM acted

The company where the partner invested all the company's money was created in the 90s by the Russian Sergey Mavrodi. It operated in several countries in Africa under the name MMM Global.

In Brazil, however, it started operating in 2014. In 2016, MMM Brasil gained strength. Many people have fallen on the promise of profits of 30% to 50% per month. In 2018, GAP (Grupo Anti-Ponzi) had made a complaint about the end of MMM Brasil.

In the text of the GAP it is stated that in 2007 "Mavrodi was convicted in a Russian court for fraud committed against 10,000 investors in 110 million rubles".

MMM, however, quickly spread to several countries and every now and then, those involved performed the restart of the company, as stated in the complaint.

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