With criminal proceedings against TelexFree’s James Merrill completed, the SEC filed for a lift on the stay that froze their civil case back in 2014.

That motion was granted on September 12th, which will see the SEC resume proceedings against TelexFree, Carlos Wanzeler, Santiago De La Rosa, Randy Crosby and Faith Sloan.

James Merrill, Steven Labriola, Joseph Craft and Sann Rodrigues were also included in the initial complaint but have since settled.

Whereas Carlos Wanzeler, Randy Crosby and Santiago De La Rosa have kept relatively low profiles since the TelexFree bust, Faith Sloan dubbed herself “CryptoQueen” and has been promoting cryptocurrency trading.

Since getting involved in cryptocurrency Sloan has become highly secretive, conducting business only through her “Cryptocurrency – BlockChain: QueenWiki” closed Facebook group.

Under the alias “Market Disruption”, Sloan is currently promoting the USI-Tech Ponzi scheme.

On the same day Judge Gorton lifted the stay on TelexFree civil proceedings, the SEC filed a motion to amend their original complaint.

The second proposed amendment adds Santiago De La Rosa, Randy Crosby and Faith Sloan to the third claim for relief.

It also explicitly requests Carlos Wanzeler be permanently barred from serving as an officer or director of a public company.

The motion is currently before the court awaiting approval. I don’t see why it wouldn’t be granted, after which an update on current proceedings is expected.


Update 5th October 2017 – The SEC’s request to amend their complaint was granted on September 28th.

The SEC filed their second amended complaint later the same day.