The FTC has intensified its case against Iyovia owners Chris Terry and Isis Terry, filing a January 30, 2026, motion for coercive incarceration and default judgment after repeated violations of a preliminary injunction, per court filings. Following a January 23 hearing that Isis Terry failed to attend despite court orders, the FTC highlighted bad-faith non-compliance, including refusal to disclose $80 million in cryptocurrency transfers, $100 million in unreported income, and details of the Auspicious Trust, per. The motion seeks to compel compliance or impose sanctions, marking a critical escalation in the $1.2 billion fraud case filed in May 2025.
The FTC detailed multiple breaches: the Terrys understated income (claiming $13 million vs. over $100 million), concealed luxury assets, and ignored requests for foreign asset accountings, per. Receiver reports described the Terrys as “overtly uncooperative,” hindering asset recovery for victims of Iyovia, a reboot of iMarketsLive/IM Mastery Academy, per. Isis Terry’s absence from the hearing and prior deposition testimony admitting she hadn’t read the injunction underscores willful disregard, per. The FTC argues that monetary penalties are ineffective with assets frozen, favoring incarceration until compliance or default against corporate defendants.
On January 27, 2026, the FTC moved to amend its complaint, adding 27 relief defendants, including Keishia McLeod and the Auspicious Irrevocable Trust, accused of laundering millions through entities like Afflatus Holdings LLC, per. This expands recovery efforts for victims of the MLM pyramid scheme, which promised forex trading education but operated as a recruitment-driven fraud. X posts from @CryptoLawyerz note parallels to GSPartners and Forsage cases, with $1B+ losses highlighting MLM crypto risks.
The FTC’s push for coercive measures could accelerate $500M+ in potential refunds if successful, per. Investors should monitor filings on sec.gov and avoid MLM schemes. Bitcoin (BTC) ($113,234) and Ethereum (ETH) ($4,070) remain stable, per CoinMarketCap, but Iyovia’s case reinforces SEC scrutiny on unregistered securities, per. Follow @TheBlock__ on X for updates. The Terrys have until February 11, 2026, to respond; a resolution could set a precedent for crypto Ponzi enforcement in 2026.
