In August 2023, the global proprietary trading community witnessed the sudden collapse of My Forex Funds, one of the largest prop trading companies. This event caused a major shock and raised many questions about the stability and legal regulation of this business model.
Recently, MFF issued an important announcement stating that a Canadian court has formally approved the transfer of the company’s assets in the country. This decision represents a significant step forward in the complex legal process surrounding the company. This announcement offers hope for a fairer handling of assets for all parties involved.
Is My Forex Funds preparing for a comeback?
In a December 9th post on X, the now-closed proprietary trading firm issued a hopeful statement, emphasizing that: “We are in the process of regaining full control of our assets, data, and systems.” The company also called the recently approved asset transfer a crucial third step in its recovery roadmap. These are strong indications that the possibility of restarting the company is a realistic goal they are working towards, offering hope to affected traders.
Although this proprietary trading firm has published a detailed roadmap for regaining control of the assets, it is important to note that this roadmap only suggests the possibility of restarting, not confirms it.
Following the asset transfer, the post on X further stated: “The restructuring phase of the MyForexFunds team can now begin.” This is a strategic move to rebuild the internal foundation. The company is committed to bringing the right people back to their positions to allow for a comprehensive analysis and operational review. This process is considered essential, bringing them one step closer to opening the next chapter for MyForexFunds and the global trading community.
My Forex Funds – From glory to crisis, is revival next?
Although My Forex Funds ceased operations more than two years ago due to legal issues, the company made a remarkable comeback earlier this year. This comeback was a direct result of a US court decision that officially dismissed a felony fraud lawsuit initiated by the Commodity Futures Trading Commission (CFTC).
This decision not only relieved the company of its legal burden but also came with an unexpected development: the court approved the request to sanction the regulator as requested by the proprietary trading firm. This outcome is not only a victory for MFF but also a wake-up call about the limits of regulatory bodies.
The Commodity Futures Trading Commission (CFTC) initially brought serious fraud charges against My Forex Funds and its CEO, Murtuza Kazmi, in August 2023. According to the regulator, MFF allegedly amassed a huge sum of money, at least $310 million in fees, through its proprietary trading activities. The CFTC stated that the platform successfully served over 135,000 clients between November 2021 and the time the company was suspended, demonstrating its widespread popularity in the market.
However, the drastic actions of the regulatory agency, including a temporary injunction and a complete asset freeze, forced the business to cease operations overnight, causing significant damage. Later, during the proceedings, a shocking finding emerged: CFTC representatives were found to have “intentionally” misrepresented a tax payment to obtain the initial asset freeze order. Following a strong defense, the court reconsidered and made the crucial decision to lift most of the asset freeze on CEO Kazmi’s personal investments.
Not all members of the Commodity Futures Trading Commission (CFTC) approve of how the enforcement team handled the My Forex Funds case. Caroline Pham, currently the interim chair of the CFTC and a former commissioner, has publicly expressed concerns about the team’s unprofessional conduct.
Caroline Pham issued a strong statement regarding the misconduct of the CFTC law enforcement team: “This is a serious matter, and we, the Commission, will be under close scrutiny of how we handle the alleged misconduct by the CFTC.” She stressed that “This type of conduct cannot be tolerated within a law enforcement agency.”
In response to allegations of misconduct related to the MFF case, the CFTC took disciplinary action by suspending four lawyers and an investigator. While their official identities were not disclosed, previous court records identified Ashley Burden, the lead lawyer, and Matthew Edelstein, the investigator, as two individuals under scrutiny for the alleged misconduct.
The CFTC’s chief counsel, Ashley Burden, later admitted that he had been “careless and negligent” in the investigation. Alongside this admission, U.S. Senator Charles Grassley expressed deep concern, publicly questioning the CFTC’s “processes and procedures,” particularly regarding how the agency handles internal disciplinary actions following allegations of misconduct.
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