TelexFree recently announced major changes to its compensation plan, a structure that had promised $52 weekly returns on $289 AdCentral investments to thousands of people worldwide for roughly two years. Company owner Carlos Costa released a YouTube video two days ago detailing the new plan. This move immediately raised questions about the plan's long-claimed sustainability.
Portuguese-language details of the new plan emerged first. No official English documentation has yet surfaced. The video, posted on TelexFree's official Facebook page, ignited an immediate firestorm. More than 1,400 comments flooded in within days, mostly from Brazilian affiliates demanding answers.
Many affiliates questioned the timing directly. Jhonata Paula asked, "Why change the plan?? Now you guys have given the Brazilian government proof that the plan was illegal!!" Darlan Andrade echoed this suspicion, stating, "Carlos Costa said that the sustainability of the company's plan was reliable, so why do they want to change it?"
These were not isolated complaints. Costa spent months reassuring investors the original plan was sound. He released thirty-two "TelexFree News" YouTube videos, consistently telling Portuguese-speaking investors that nothing was wrong and the math worked. Then, without warning, the entire plan shifted.
The announcement of an overhaul effectively confirmed what the original business model already suggested: the scheme was unsustainable. Companies do not overhaul sustainable systems. They overhaul systems that are failing.
TelexFree faces significant legal pressure. Brazil's Acre Public Prosecutor continues to pursue a case against the company, which transferred hundreds of thousands, possibly millions of dollars under the existing plan. Appeals have failed repeatedly in Brazilian courts. A plan change will not erase that legal history.
The timing of this change coincides with a US investigation. Massachusetts has confirmed its inquiry into TelexFree and has already subpoenaed witnesses to appear before the state's Securities Division. The company likely knew this pressure was mounting well before its public announcement. The compensation plan change appears to be damage control aimed at regulators, not reassurance for investors.
Carlos Costa still has not publicly answered Andrade's fundamental question about the shift in sustainability claims.