Leveled Up Society 

The Rise and Sudden Fall of Leveled Up Society

LUS burst onto the proprietary trading scene with grand promises: funding options ranging from $10,000 to $200,000, an 80% profit split, and the allure of scaling up to $5 million. For aspiring traders, it seemed like a golden ticket. However, as the saying goes, “If it sounds too good to be true, it probably is.”

In late 2023, LUS abruptly shuttered its operations. The official narrative pointed to a fallout with Easton Consulting Technologies, a company intricately linked to over 13 prop trading platforms. According to reports, Easton Consulting Technologies is a limited liability company registered in Florida in 2021, run by CEO Angelo Ciaramello and Managing Partner Carlos Rico-Ospina. They also helm The Funded Trader, another prop trading firm. This web of interconnected entities raises eyebrows about potential conflicts of interest and the stability of such firms.

The Blame Game and Lack of Accountability

Post-closure, the blame game commenced. Raul Gonzalez, aka “Lamboraul,” a prominent FX influencer and co-owner of LUS, cited irreconcilable differences with Easton Management as the catalyst for the shutdown. He lamented, “This is our brand that we worked tirelessly on… and we did not want to have Leveled Up to head in the direction Easton was taking it towards.” Meanwhile, Ciaramello reassured stakeholders that the closure had “nothing to do with liquidity” but was due to “overall misalignment.”

These vague explanations did little to comfort the 76,000+ members left in limbo. Promises of refunds and payouts were made, but the abruptness of the closure and the lack of a concrete plan left many skeptical. One can’t help but wonder: was this a genuine managerial dispute, or a convenient scapegoat for deeper financial woes?

Censorship and Information Suppression

Now, let’s address the elephant in the room: censorship. In the aftermath of the shutdown, LUS’s digital footprint began to wane. Their website displayed a curt message about the closure, devoid of detailed explanations or accountability. Traders seeking clarity were met with silence, their inquiries ignored or met with generic responses.

This information blackout isn’t just poor customer service; it’s a deliberate attempt to control the narrative and suppress dissent. By withholding information, LUS effectively censored its community, preventing a unified outcry or organized demand for justice. Such tactics are reminiscent of regimes that suppress free speech to maintain control—a far cry from the transparency one would expect from a reputable financial entity.

The Wider Implications for the Prop Trading Industry

LUS’s downfall isn’t an isolated incident. The proprietary trading industry has seen a surge in firms operating in regulatory gray areas. Many prop firms are unregulated because they deploy their own funds, not those of traders, allowing them to sidestep most regulations. This lack of oversight creates a fertile ground for fraudulent activities.

The case of My Forex Funds (MFF) is a glaring example. Once a prominent prop firm, MFF faced fraud allegations and investigations by the US Commodity Futures Trading Commission (CFTC), leading to a halt in all services and suspension of accounts and withdrawals. Such incidents highlight the urgent need for regulatory scrutiny in the prop trading sector to protect traders from potential scams.

A Call to Action

The LUS debacle serves as a cautionary tale for potential investors and traders. It’s imperative to conduct thorough due diligence before entrusting funds to any trading firm. Look beyond the glossy marketing materials and scrutinize the company’s regulatory status, management team, and financial health.

Moreover, regulatory bodies must tighten oversight of the prop trading industry. The current loopholes allow firms to operate without accountability, putting traders at significant risk. Implementing stringent regulations would deter fraudulent entities and ensure a safer trading environment.

Conclusion

Leveled Up Society’s rise and fall is a stark reminder of the perils lurking in the unregulated corners of the financial world. Their attempts to censor information and suppress transparency have only amplified the need for vigilance among traders and stricter oversight by authorities. As we navigate this complex landscape, one truth remains: in the absence of transparency, skepticism is our best defense.