TLC Trading securities fraud D&R order from California

TLC Trading has received a securities fraud desist and refrain order from California’s Department of Financial Protection and Innovation (DFPI).

DFPI’s August 20th, 2024 order
cites the following respondents:

TLC Trading, dba Trade Like Crazy AI and TLC Trading AI

the website domain “tlctrading.ai”

the website domain “tradelikecrazy.ai and

Armen Sargasyan

As per the DFPI’s TLC Trading fraud order;

Beginning at least as early as October 2023, TLC Trading offered and sold securities in the form of investment contracts in California through general solicitations on its website.

TLC Trading facilitated investor deposits and withdrawals using crypto assets.

As part of its solicitation efforts, TLC Trading used a pyramid scheme structure that would reward investors for inducing others to send money to TLC Trading.

The Packages offered by TLC Trading were securities that were neither qualified nor exempt from the qualification requirement under the CSL.

The Department has not issued a permit or other form of qualification authorizing TLC Trading to sell these securities in California.

Pursuant to Corporations Code section 25532, TLC Trading LLC d/b/a Trade Like Crazy AI and TLC Trading AI and Armen Sargasyan are hereby ordered to desist and refrain from the further offer or sale of securities in California, including but not limited to investment contracts known as Packages, unless and until the qualification requirements of the CSL have been met.

DFPI also published an accompanying
TLC Trading fraud awareness video
on its official YouTube channel.

Trade Like Crazy
was an AI trading bot crypto Ponzi that launched in late 2023.

By mid 2024 Trade Like Crazy had collapsed, prompting a
TLC Trading
reboot.

TLC Trading saw the introduction of Polish national
Tomas Malodobry
playing fictional TLC Trading CEO Armen Sargasyan.

TLC Trading
collapsed
on July 31st, 2024.

Trade Like Crazy and TLC Trading are believed to have been run by Polish and/or Russian scammers 
hiding in Dubai
.

🤖 Quick Answer

What regulatory action did California's DFPI take against TLC Trading?

What fraudulent activities did TLC Trading conduct?
TLC Trading offered investment contracts as securities without registration, facilitated cryptocurrency transactions for investor deposits and withdrawals, and operated a pyramid scheme structure rewarding investors for recruiting additional participants since October 2023.

Who were the named respondents in the DFPI order?
The DFPI order named TLC Trading (operating as Trade Like Crazy AI and TLC Trading AI), the website domains tlctrading.ai and tradelikecrazy.ai, and Armen

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