iFreeX payment problems, Sann Rodrigues on the run?

Brazilian authorities raided an iFreeX promotional event, questioning co-founder Sann Rodrigues. This incident follows earlier reports of iFreeX ceasing payments to its affiliates, with Rodrigues himself now reportedly on the run from Brazil.

iFreeX notified affiliates that their Visa cards would be replaced by International Mastercard cards at no charge. These new cards would be sent to the addresses registered with 2PayNet, a Hong Kong-based payment solutions provider founded in 1999. According to its website, 2PayNet offers web-based commission and bonus distribution services.

Companies operating within the multi-level marketing sector, particularly those with questionable legitimacy, have increasingly turned to Chinese financial channels. This shift aims to circumvent stricter Western financial regulations, often associated with anti-money laundering protocols. Ownership of 2PayNet remains undisclosed, as the company's website provides no information on its principals. The domain registration for 2PayNet, established on July 22, 2013, is also protected by a privacy service. iFreeX stated that affiliate payments would commence through 2PayNet on March 12th.

This transition follows reports that Brazilian processor Alelo allegedly suspended iFreeX’s payment processing account. It is not clear if iFreeX funds were frozen as a consequence of this suspension. However, the recent police raid likely contributed to difficulties in securing and maintaining payment processing services within Brazil.

Questions surrounding iFreeX’s ownership persist, mirroring the opacity of 2PayNet. Rodrigues is the primary public face of iFreeX, though he denies ownership. He has not revealed who actually owns the company. Affiliates seeking clarification on ownership have reportedly been told by Rodrigues that "you do."

Reports from Brazil suggest Rodrigues was initially prevented from leaving the country after the iFreeX event raid. He has now apparently fled Brazil and returned to the United States, possibly anticipating further legal action. Rodrigues recently participated in a web conference where he stated his presence in the U.S. was due to a perceived lack of justice in Brazil.

Rodrigues' return to the U.S. is notable given an existing injunction against him. This injunction prohibits him from engaging in fraudulent activities, a key reason he previously left the United States.