TelexFree's legal battles intensified on April 24th, 2014, as the company moved to challenge a temporary restraining order while facing federal efforts to control its bankruptcy. The SEC had pushed to transfer the bankruptcy application to Massachusetts, and the Department of Justice sought a Chapter 11 trustee.

The Department of Justice's petition, if granted, would place the agency in charge of TelexFree's bankruptcy application and its operations. This move aimed to assert federal oversight over the alleged pyramid scheme.

A preliminary injunction hearing for defendants Joe Craft, Carlos Wanzeler, and Jim Merrill, originally set for April 24th, was postponed to May 7th. Another hearing to decide on a preliminary injunction against Faith Sloan, Randy Crosby, Santiago De La Rosa, Sann Rodrigues, and Steve Labriola remained scheduled for April 25th. The temporary restraining order stayed in effect until that April 25th hearing.

On April 23rd, TelexFree filed a motion arguing that certain parts of the temporary restraining order violated the automatic stay provision of its Chapter 11 bankruptcy filing. The company asserted its right to "operate their business in the ordinary course." It asked the court for relief from sections of the TRO that prevented it from conducting "ordinary business."

TelexFree specifically requested the court prohibit the SEC from "enforc(ing) a judgment against the Debtors or seeking to recover assets from the other defendants or third parties as a result of an alleged Ponzi Scheme." The company also sought to invalidate several specific points within the TRO.

These challenged points included prohibitions on withdrawing, selling, transferring, or diminishing the value of any assets and funds, which effectively froze bank accounts. They also covered orders to provide the SEC with financial activity details from January 1st, 2012, to the present. Further, TelexFree contested the order to deposit all fraudulently obtained funds from affiliate investors into a court-overseen bank account.

The company also fought against the TRO's ban on accepting new investments from affiliates and its injunction against destroying, concealing, or altering any items related to TelexFree's operations. Finally, TelexFree opposed the SEC's approval to conduct discovery and depositions on its management and top investors, which was intended for information gathering.

These motions and hearings marked a critical phase in the federal government's efforts to dismantle the alleged TelexFree pyramid scheme and recover investor funds.