Yesterday, TelexFree executives convened a conference call to assure US affiliate investors that a Brazilian injunction, which effectively shut down the company's operations in Brazil, would not impact them.

Maintaining confidence among US affiliates was crucial for TelexFree. The company viewed the US as a vital recruitment market, especially since "a large group from the U.S. just joined recently," as one affiliate shared on social media. TelexFree had intensified its affiliate investor recruitment activity in the US over the past year.

International Marketing Director Steve Labriola, President Carlos Wanzeler, and unofficial President James Merrill participated in the call. Labriola provided a brief introduction before Wanzeler spoke.

Wanzeler, referring to them as "the facts," emphasized that the Acre court granting the injunction was "a state court, not a federal court." The operational suspension placed on TelexFree was nationally binding, making the distinction largely irrelevant.

The Acre Court had also frozen all movable and immovable property, bank accounts, and investments owned by TelexFree and its managing partners, Carlos Costa and Roberto Carlos Nathaniel Wanzeler. This decision extended to their spouses and included funds held by Ympactus Comercial Ltda., via a letter to the Central Bank of Brazil. Despite these comprehensive freezes, Wanzeler asserted that the Acre injunction "is not gunna affect US or any other country."

With TelexFree's funds frozen in Brazil, its ability to pay overseas affiliates became uncertain. A court order explicitly prohibited the company from making "payments to partners and publishers" and paying "commissions, bonuses and any benefits derived from the network Telexfree." The penalty for each such payment or commission was set at $100,000 USD.

Wanzeler concluded the call by urging US TelexFree affiliates to disregard news from Brazil. He stated, "TelexFree is not shut down in Brazil, there's a lot of news there, it's liar. Everything you hear from news, it's not true. Our company, everything is ok."