A three-judge panel in Acre's 2nd Civil Chamber Court unanimously denied TelexFree's appeal today, upholding the injunction that halted its operations in Brazil. This decision came despite widespread expectations among affiliates that the court would overturn the original ruling.

A brief hearing in Acre's 2nd Civil Chamber Court resulted in a unanimous decision denying the company's appeal. The existing injunction against the company's alleged Ponzi scheme in Brazil therefore remains in force.

TelexFree's lawyer, Djacir Hawk, confirmed the company will appeal again, despite two previous rejections. A federal judge’s comment suggests the next appeal will likely fail.

"The law is the rule of the game and we can not go against the law," said Judge Waldirene Lamb during her vote.

TelexFree has consistently argued that simply having a product means it cannot be a Ponzi scheme. This stance overlooks that a product's presence does not inherently prevent a scheme from being fraudulent.

After the initial injunction, TelexFree tried to transfer $88 million USD out of Brazil. The court order in place blocked this transaction. The attempted transfer appeared to breach the injunction's conditions. Company lawyers claimed the $88 million was for "paying suppliers," but they offered no explanation for such a large debt.

Public Prosecutors continue their investigation. Globo reports the TJ-AC will await the State Prosecutor's opinion before making further decisions on the interlocutory appeal.

Despite the clear breach and the ongoing fraud accusations, TelexFree's legal team remains optimistic. Djacir Hawk stated TelexFree faces a "difficult situation" due to asset freezes but is not at risk of bankruptcy.

Horst Fuchs, another company lawyer, declared the new defeat does not "endanger the survival of the company. There's no chance of that happening."

The injunction temporarily stops TelexFree's weekly ROI payments to Brazilian investors. The company's ability to pay international affiliates located elsewhere remains uncertain. Brazilian affiliates are now reportedly encouraging their downlines to create fake US-based accounts to continue withdrawing weekly ROIs. No US regulator has announced action against TelexFree to date.