On October 30, 2025, the U.S. District Court for the District of Massachusetts dismissed with prejudice all individual claims by former lead plaintiff Rita Dos Santos against Vantage Payments, LLC and its owner Dustin Sparman in the ongoing TelexFree securities multidistrict litigation (MDL), per FindLaw. The dismissal followed Sparman and Vantage’s motion for summary judgment, granted the same day, in the case In re TelexFree Securities Litigation (Docket No. 2254), per. This ruling ends Dos Santos’ allegations that Vantage aided and abetted the TelexFree Ponzi scheme by processing credit card transactions, causing her claimed losses.
The court’s decision hinged on Dos Santos’ admitted misrepresentations in her claims, including fabricating a $301,660 investment in 2012, when records show her actual involvement was limited to $4,325 in debit card purchases in February 2013, from which she withdrew $7,195 on March 13, 2013—making her a net winner by $2,870, per. Expert analysis by Ms. Van Tassel, Dos Santos’ own damages expert, confirmed no real-money losses, only withdrawals, per. Additional findings included no evidence of a “triangular transaction” or cash investments post-July 2013, and Vantage’s lack of TelexFree dealings before August 2013.
TelexFree, a hybrid Ponzi-pyramid scheme operating from 2012 to 2014, defrauded over 2 million participants worldwide of approximately $3 billion, with nearly 1 million suffering net losses, per. Dos Santos served as lead plaintiff from 2014 until July 2023, when Anthony Cellucci replaced her after her voluntary dismissal from the class action, per. During her tenure, several settlements were reached, including:
These settlements provided relief to victims, but ethical questions arise about Dos Santos’ role as a net winner leading the class for nearly a decade.
The dismissal raises concerns about the validity of prior judgments influenced by Dos Santos’ representations, potentially requiring refunds of any funds she received as lead plaintiff, though legal mechanisms remain unclear since the class action began in 2014, per. The TelexFree MDL continues, with federal regulatory efforts alongside the class action aiding victim recovery. Vantage’s victory underscores the challenges in proving aiding-and-abetting liability without direct knowledge of fraud, per. No immediate market impact on Bitcoin (BTC) ($113,234) or Ethereum (ETH) ($4,070), per CoinMarketCap, but it highlights ongoing risks in crypto-related litigation.
Investors affected by similar schemes should file claims through official portals and verify processors via sec.gov. Diversify into regulated assets like USDC or ETH, with stop-losses below BTC’s $112,000, per TradingView. Follow @TheBlock__ on X for updates. This ruling may encourage more rigorous plaintiff vetting in future MDLs.
