On February 4, 2026, a U.S. court granted a brief stay in FTC contempt proceedings against Chris and Isis Terry, former leaders of the iMarketsLive MLM scheme, per court filings. The Terrys’ ex parte motion filed January 30 requested the pause, citing sealed reasons in an affidavit by attorney George Kelesis, per. The stay extends deadlines for responding to the FTC’s contempt motion seeking coercive incarceration until compliance, and answering the January 27 amended complaint, originally due February 11. A decision on the Terrys’ broader request to stay the entire case remains pending as of February 7.
The FTC opposed the motion on February 3, noting it was filed ex parte, leaving them unable to respond fully. Speculating the stay relates to a criminal matter, the FTC argued it couldn’t address factors like burden on defendants or public interest without details, per. The Terrys dismissed the opposition as “speculation,” insisting the sealed affidavit justified the stay, per. The judge’s order acknowledged the need to resolve the motion, granting a limited stay to avoid prejudice. The secrecy has fueled speculation of pending DOJ criminal charges, given iMarketsLive’s $1B+ alleged fraud scope.
iMarketsLive, rebranded IM Mastery Academy, faced FTC action for operating as a pyramid scheme, defrauding consumers through forex and crypto trading education tied to recruitment, per. The Terrys, central figures, were hit with contempt for violating a 2022 settlement requiring asset disclosures and business bans, per. Alleged asset transfers, including a luxury car to Kelesis, raised dissipation concerns, per. Parallel SEC and CFTC cases highlight iMarketsLive’s unregistered securities and commodity pool fraud, per. The stay delays potential incarceration, but victim restitution hangs in the balance.
The stay provides temporary relief for the Terrys but underscores MLM crypto risks, mirroring cases like GSPartners and Forsage, per. Bitcoin (BTC) ($113,234) and Ethereum (ETH) ($4,070) remain stable, per CoinMarketCap, but iMarketsLive fallout could dent DeFi trust, per. Investors should verify platforms via sec.gov or ftc.gov, avoiding MLM schemes. Diversify into USDC or ETH with stop-losses below BTC’s $112,000, per TradingView. Follow @TheBlock__ on X for updates. A full stay denial could accelerate contempt sanctions, while approval delays justice for victims.
