Federal and Massachusetts regulators sued and froze TelexFree's assets last month, alleging that it was a pyramid scheme. A criminal grand jury in Boston is investigating the case.
On Wednesday, a federal bankruptcy judge in Las Vegas moved TelesFree's case to Massachusetts after the Securities and Exchange Commission argued that there were no grounds to file the case in Las Vegas. TelexFree's lawyers said the company filed for bankruptcy protection in Nevada so that it can reorganize the business. The SEC said there is nothing to reorganize, as the company had no meaningful business to speak of.
