Funded Engineer Set to File for Bankruptcy
On Monday (7/15), prop trading firm Funded Engineer announced the "permanent closure" of its operations on its official X account, effective immediately, and decided to file for bankruptcy.
The company's website also displayed a "cessation of operations notice," no longer offering account access options to customers.
The announcement stated: "Despite our extensive efforts to improve our financial situation, we were unable to overcome the challenges we faced, making it necessary to cease all operations immediately."
"As part of the shutdown, Funded Engineer will file for bankruptcy."
The company also said that over the past few months, they had tried everything to improve their financial situation. They attempted to restructure the company and its operations, tried to reduce expenses, and even sought additional investment, but despite their efforts, they were unsuccessful.
Funded Engineer didn't specify how much they owe or how they plan to repay it. Since they're filing for bankruptcy, all debt-related matters will likely be handled through the bankruptcy proceedings, which could take several years to resolve.
Additionally, an interesting question arises: How will the bankruptcy administrator view the profits made from prop trading? Since these funds weren't earned from actual market trades but generated in a simulated environment, this could complicate the process.
"This decision was not made lightly, and we understand it will have a significant impact on our customers, partners, and employees. We are committed to managing this process as smoothly as possible and will work closely with our legal and financial advisors to resolve all outstanding matters."
Another Prop Trading Firm Collapses
Funded Engineer, headquartered in Dubai, began experiencing troubles as early as February last year. First, their technology partner FPFX Technologies claimed they had issues and accused them of fraud, revoking their authorization.
This wasn't even the worst part. Before that, they had already lost their broker partnerships. Why? Because MetaQuotes, a major player in the industry, started a comprehensive crackdown on the prop trading sector, making it difficult for them to find partners.
Although Funded Engineer seemed to have returned to normal operations later, their closure now indicates that they were still facing significant internal issues.
Oddly enough, prop trading is currently quite popular with high demand. However, many firms in this industry have still gone under, including True Forex Funds, Stocknet Institute, SurgeTrader, and Skilled Funded Trader, all of which have shut down. It seems this business is truly challenging to maintain!
Reference：Breaking: Prop Trading Firm Funded Engineer Shuts Down
