LZTrade Fund operates in the trading bot MLM niche.

The company represents it is incorporated as

  • Leizan Capital Limited in the BVI
  • LZTD Investment Holdings in St Vincent and the Grenadines and
  • LZTD Investment Holdings in South Africa

BVI and St Vincent and the Grenadines are scam-friendly jusridictions that automatically raise red flags. South Africa isn’t known for strong regulation of MLM related fraud.

More importantly though, these are all shell company incorporations. Basic incorporation of any type in any jurisdiction is meaningless with respect to MLM due-diligence.

LZTrade Fund is purportedly headed up by CEO Alejandro Morales and CTO Zhao Hua:

No information about either Morales or Hua is provided.

Further research reveals LZTrade Fund webinars featuring Alejandro Morales:

The combination of Alejandro Morales not existing outside of LZTrade Fund marketing and him having a British accent, makes him a prime Boris CEO candidate (i.e. played by an actor).

I wasn’t able to pin down a name but “Alejando Morales” might be a resident of Thailand. In 2017/2018 he made several visits to Invite Wine & Cocktail Bar in Bangkok.

Granted that was four years ago at best but be it Thailand or somewhere else, lends itself to Morales being an actor.

One final bit of supporting evidence I’ll throw in is the multi-socket adaptor in the webinar screenshot above. It matches a number of power sockets available in Thailand.

Zhao Hua is too vague of a name to turn up anything specific. That there’s nothing obviously verifiable suggests he’s likely an actor too.

LZTrade Fund’s website domain (“lztradefund.com”), was privately registered on March 29th, 2022.

SimilarWeb currently ranks top sources of traffic to LZTrade Fund’s website as Colombia (46%), Honduras (28%) and the US (27%).

As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.

LZTrade Fund’s Products

LZTrade Fund has no retailable products or services.

Affiliates are only able to market LZTrade Fund affiliate membership itself.

LZTrade Fund’s Compensation Plan

LZTrade Fund affiliates invest tether (USDT) on the promise of a monthly ROI:

  • Jones – pay a 15.90 USDT fee, invest 100 USDT or more and receive 10% to 20% a month
  • Kreiger – pay a 29.90 USDT fee, invest 300 USDT or more and receive 20% to 35% a month
  • Soros – pay a 69.90 USDT fee, invest 500 USDT or more and receive 35% to 50% a month

LZTrade Fund takes a 20% cut of returns paid out. The company also charges an 8% or 10 USDT withdrawal fee, whichever amount is higher.

Note that LZTrade Fund only processes withdraw requests once a week.

The MLM side of LZTrade Fund pays on recruitment of affiliate investors.

LZTrade Fund Affiliate Ranks

There are six ranks within LZTrade Fund’s compensation plan.

Along with their respective qualification criteria, they are as follows:

  • S1 – invest at least 100 USDT and recruit others who together invest at least 500 USDT
  • S2 – invest at least 500 USDT, recruit others who together invest at least 1000 USDT and generate 2000 USDT in total downline investment volume
  • S3 – invest at least 1000 USDT, recruit others who together invest at least 2500 USDT and generate 8000 USDT in total downline investment volume
  • S4 – invest at least 2500 USDT, recruit others who together invest at least 5000 USDT and generate 25,000 USDT in total downline investment volume
  • S5 – invest at least 5000 USDT, recruit others who together invest at least 10,000 USDT and generate 100,000 USDT in total downline investment volume
  • S6 – invest at least 10,000 USDT, recruit others who together invest at least 50,000 USDT and generate 500,000 USDT in total downline investment volume

Referral Commissions

LZTrade Fund pays a 10% referral commission on fees paid by personally recruited affiliates.

Residual Commissions (investment)

LZTrade Fund pays investment residual commissions via a unilevel compensation structure.

A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):

If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.

If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.

LZTrade Fund caps payable unilevel team levels at twenty.

Investment residual commissions are paid as a percentage of additional investment made across these twenty levels, based on rank:

  • S1 ranked affiliates earn 5% on level 1 (personally recruited affiliates)
  • S2 ranked affiliates earn 5% on level 1 and 6% on level 2
  • S3 ranked affiliates earn 5% on level 1, 6% on level 2 and 7% on level 3
  • S4 ranked affiliates earn 5% on level 1, 6% on level 2, 7% on level 3 and 8% on level 4
  • S5 ranked affiliates earn 5% on level 1, 6% on level 2, 7% on level 3, 8% on level 4 and 9% on level 5
  • S6 ranked affiliates earn 5% on level 1, 6% on level 2, 7% on level 3, 8% on level 4, 9% on level 5 and 10% on level 6

Residual Commissions (ROI)

ROI residual commissions are paid out via the same unilevel compensation structure as investment residual commissions.

ROI residual commissions are again tied to rank and capped down twenty levels of recruitment:

  • S1 ranked affiliates earn 35% on level 1 (personally recruited affiliates)
  • S2 ranked affiliates earn 35% on level 1 and 20% on level 2
  • S3 ranked affiliates earn 35% on level 1, 20% on level 2 and 10% on level 3
  • S4 ranked affiliates earn 35% on level 1, 20% on level 2, 10% on level 3 and 5% on levels 4 and 5
  • S5 ranked affiliates earn 35% on level 1, 20% on level 2, 10% on level 3, 5% on levels 4 and 5 and 3% on levels 6 to 10
  • S6 ranked affiliates earn 35% on level 1, 20% on level 2, 10% on level 3, 5% on levels 4 and 5, 3% on levels 6 to 10 and 1.5% on levels 11 to 20

Lifestyle Rewards

LZTrade Fund rewards S4 and higher ranked affiliates with Lifestyle Rewards.

Lifestyle Rewards are calculated using credits.

Credits are awarded as a percentage of earnings (appears to exclude referral commissions):

  • S4 affiliates earn a 3% earnings match in credits
  • S5 affiliates earn a 4% earnings match in credits
  • S6 affiliates earn a 5% earnings match in credits

Accumulated credits can be cashed in for the following Lifestyle Rewards:

  • watch – 10,000 credits
  • car – 50,000 credits
  • house – 200,000 credits

Joining LZTrade Fund

LZTrade Fund affiliate membership is free.

Full participation in the attached income opportunity requires a minimum 100 investment in tether and 15.90 one-off fee.

LZTrade Fund Conclusion

LZTrade Fund markets itself as

The Best Copy Trading System Based On AI

Trading bots are the most common form of MLM related securities fraud.

Even if you take LZTrade Fund at face value, the company is pitching a passive investment opportunity:

This constitutes a securities offering, which LZTrade Fund is not registered in any country for. This includes Colombia, Honduras and the US.

Thus at a minimum, LZTrade fund is committing securities fraud and operating illegally.

MLM companies committing securities fraud typically aren’t doing what they claim to be.

Here we have LZTrade Fund, likely fronted by actors, marketing a trading bot created by persons unknown and with no verifiable history.

Before anyone chimes in with bUt WhAt AbOuT mYfXbOoK or similar, this is not a substitute for audited financial reports filed with regulators.

If LZTrade Fund’s bot was capable of generating close to 50% a month on a consistent basis, they wouldn’t selling you access for 69.90 USDT. They probably wouldn’t be selling you access at all.

Trading bot Ponzi schemes that operate through an affiliate’s broker account end in two ways:

  1. the trading bot blows up and causes widespread losses; or
  2. the admins initiate rigged trades and steal everyone’s money.

There is no protection from either scenario, as LZTrade Fund affiliates don’t own the bot. They’ve given their account and the funds in over to scammers.

The real money, if there is any to be made, in these trading bot schemes is through recruitment.

LZTrade Fund’s actual admins and early top recruiters will walk away with the majority of money distributed across affiliate investor accounts.

The rest of LZTrade Fund’s participants might make a bit here or there, but will ultimately come away with a loss.

 

Update 19th May 2023 –¬†LZTrade Fund has collapsed. From what I can tell the collapse occurred in July 2022, roughly a month after this review was published.

I received notification that the LZTrade Fund “webinar” YouTube video originally linked this article has been deleted. Further research reveals LZTrade Fund has deleted their entire YouTube channel and social media accounts.

Website domains still promoting LZTrade Fund include:

  • lztrade-fund.com
  • lztd-funds.com
  • lztrade-official.com

In light of LZTrade Fund collapsing, these are likely defunct backup domains and/or phishing websites.