Floor-less, convertible toxic lending is a specialized vehicle, sort of like an ATM-machine, that instead of directly printing cash, prints shares - allowing debt to be created from thin air, then converted into shares, which then liquidate to cash.
MMEX-scam doesn’t have, and can’t get “credit.” MMEX-scam has no (as in zero, nada, none) access to legitimate capital or lending markets. The legitimate financial community does not deal with known fraudsters, con men, hucksters, grifters, or scammers.
So there is at least one insider, Mad J., and maybe two, if you count The Lemon. They extract cash from the discounted loan proceeds, a few hundred K at a time. The loan shark knows that Mad J. has many (5x) marks in the pool, and they’ll be able to dump their shares - toxic lending has an average of about 300X return, cash on cash even for a mediocre scam like MMEX-scam. It’s a great, but risky, quasi-legal “business” to be in.
Mad J. just has to buy a few props along the way, a flagpole, some gold spray-painted shovels, push a little dirt around - every con man like Mad J. knows spend a dime to make a dollar - classic grift...
Since all this is coming out of the retail "investor's" hide, Mad J. doesn't mind spending a few grand for drilling holes, or a pretty drawing with a stamp on it.