"Disclosure of Alleged Documents" My Forex Funds is under investigation! ? Ponzi fraud? Special case?

The Origin Of The Alleged Incident Of My Forex Funds

At 2023/9/1, the official website of My Forex Funds suspended all services without warning, including all services such as websites, backstage accounts, and trading servers, and announced the following words on the official website.

My Forex Funds As a result of investigations by U.S. and Canadian regulatory agencies, all services and assets were frozen. The official was also investigated and placed in Zahid N. in Trenton, New Jersey on 9/11. Judge Quraishi held a hearing on whether to issue a preliminary restraining order.

After the incident, all services were suspended, and all accounts and withdrawals also stopped operating, including accounts that are undergoing assessment and accounts that have passed the assessment and are waiting for profit sharing. All accounts have been affected by the incident, and the scope of impact involves the use of Users of My Forex Funds around the world, including myself.

This incident is even more shocking for the Prop firm industry. After all, My Forex Funds has been among the top in the industry in the past in terms of community voice and user feedback at home and abroad, and even the good impression of the smooth operation of withdrawals.

However, something has happened. I can only review that I haven't done enough homework. Let's just believe that the compensation plan will be brought back after the hearing. At this moment, the registration fee will be recognized as a loss and the lessons learned will be reviewed.

CFTC Allegations - My Forex Funds Is A Scam

"Could it just happen so suddenly? 」

After seeing the contents of a 40-page complete document, I think things may not be as simple as I thought.

This document is composed ofThe U.S. Commodity Futures Trading Commission (CFTC) The investigation and submission, and the investigation time is about one year, not one or two months, and there is also a lot of evidence against My Forex Funds. This evidence may be in any form, including text, e-mail, etc., and according to the CFTC's investigation and allegations, My Forex Funds is a scam.

After reading the 40-page document, I will provide some key points and my views to readers who are concerned about the development of this incident.

"CFTC Document Disclosure"

CFTC Charges Full Documentation

The CFTC accused “My Forex Funds" of being a large-scale fraud scheme. The plan induces investors to believe that they will have the opportunity to participate in the foreign exchange market as professional traders and use the funds of “My Forex Funds” to trade. However, in fact, investors' transactions are not as transparent and fair as they think.

In these 40 pages of documents, the CFTC's reasons for the accusations and various evidence are listed in detail. If you are interested in understanding, you can read the complete document above. I have also sorted out the following key points.

1.My Forex Funds defraud and hide actual opponents

Although My Forex Funds claims that customers' transactions will be carried out with third-party "liquidity providers", in fact, Traders Global (non-third-party liquidity providers) are the actual counterparties to almost all customers' transactions.

Traders Global executes the most successful trader's orders in the form of an STP account, that is, the order is processed by a real overseas liquidity provider, and most of them are executed in a non-STP manner.

  • Execute the order in STP mode.

The most successful trader's order is to use Traders Global to deposit dealer funds to trade (really trade with company funds). If traders make money, Traders Global also makes money, but Traders Global does not expect traders to make money. According to the allegations, traders who execute orders in the STP method are more likely to lose money than usual (because Traders Global willAdd a larger spread to these orders); if the trader loses money, Traders Global also loses money, but the maximum loss rule has a loss limit. That is, the purpose is to suppress these most successful traders to the edge until they do not use Traders Global's funds (not to execute orders by STP).

  • Execute orders in a non-STP manner.

According to the allegations, very few customers used STP to execute orders. During the investigation period, 24,000 passed the assessment, but less than 100 accounts were executed by STP. That is, most, including most, of the traders who have passed the assessment, execute orders in a non-STP manner. When the customer makes money, Traders Global loses money; when the customer loses money until the account is terminated, repurchasing or resetting the account allows Traders Global to make money, and this method is the way Traders Global can manipulate the account well.

2.My Forex Funds uses special software to reduce the profits of successful customers

My Forex Funds secretly uses special software to influence customers' orders to execute at a lower or higher price than the price displayed when the customer's order is sent, which causes customers to unknowingly bear more losses. For a more successful trader, the larger the profit, the more serious the slippage in the account, and the longer the order execution time, in order to avoid large withdrawals, suppress customer profits, and increase customer losses.

And this is where the "slippage" was criticized at the beginning. As everyone knows, it turned out to be artificially manipulated.

3.My Forex Funds charges improper commissions

The transaction commission fee is a commission of US 33 per lot, and they claim that Traders Global is a liquidity provider, so the transaction fee will be considered reasonable, but Traders Global is not a liquidity provider and does not actually require a commission. They only made about US7 7 million from the commission.

4.My Forex Funds terminates trader's account in a false name

The CFTC discovered and accused My Forex Funds of terminating customer accounts while falsely claiming that traders had violated trading rules, when in fact they did not violate any rules.

The Impact Of My Forex Funds On The Entire Prop Firm Industry

According to this allegation, it basically revolves around Traders Global and Kazmi themselves, Traders Global does not hold a compliance license and claims to be a third-party liquidity provider to customers. The trading environment is also artificially manipulated to increase risks to traders. It was accused by the CFTC of being a Ponzi scheme.

This accusation document report reveals a lot of industry secrets, and now it can't be said that there are no possibilities for the future of this industry. After all, there are still many normal operations. If you use a compliant third-party liquidity provider and disclose all the information, you shouldn't get to the step of My Forex Funds, but it's also difficult.It is said that there will be no new actions in the supervision of the United States and Canada.

In Sidley This newsIt was pointed out that the U.S. SEC passed an amendment on August 23, 2023 to expand the supervision of proprietary trading companies by FINRA, the main regulator of over-the-counter trading. It is estimated that 64 companies will be affected, and these are not members of FINRA. This direction is really not a bad thing for the entire industry. It can be regarded as throwing an olive branch to provide a regulated alternative to becoming a member, but it also symbolizes that the Prop Firm industry will usher in major changes in the future.

This sudden regulation, in general, may be a necessary path for the rise of an industry; individually, the lessons of risk diversification are still more valuable, and this is also an ongoing plan to allocate non-U.S. and Canadian self-employed merchants, while also ensuring that the three-party liquidity providers used are in compliance.Legal (EightcapThinkMarkets), and open accounts of different companies to spread risks, get a share of profits before the company can withdraw funds smoothly, and finally use its own funds to operate, is the long-term strategy.

Regarding this matter, we can only wait for the official announcement after the 9/11 hearing to deal with it. Regardless of whether the news is good or bad, we always plan for the worst first, recognize the loss this time, and based on the details of the allegations given in this document, avoid falling into a similar trap again..

My Forex Funds Tracking

My Forex Funds Hearings Postponed

Regarding the MFF incident, the Ontario Securities Commission of Canada has extended its investigation into Traders Global Group Inc. And Muhammad Murtuza Kazmi's interim order, the hearing originally scheduled for September 13, 2023 was postponed to October 30, 2023.

Court Order for Provisional Receivership of My Forex Funds

MFF's original website has been unable to connect and the SSL has been removed. The current url is ”http://www.myforexfunds.com/“, The above picture information will be displayed after the connection, to the effect that the CFTC will appoint a temporary receiver to freeze the assets of Traders Global Group for investigation. Customers are expected to be able to claim compensation, but they still have to wait for the investigation.

There are ways to contact you below the website, but the above information does not mention information about how to make a claim. In fact, it is uncertain whether you can make a claim. This email is not a contact channel for claims, but since you have left your contact information, you may wish to try it.

Court Orders Release Of Most Of My Forex Funds Founder’s Assets

InThis reportIt was pointed out that the U.S. court ordered the release and return of most of the assets of founder and CEO Murtuza Kazmi on 11/14, worth about 100 million U.S. dollars. However,美元12.08 million of these assets will remain frozen.

The report pointed out that although Ian McGinley, director of enforcement at the CFTC, said: "The CFTC is committed to eliminating retail fraud in the market. Anyone who provides or signs a leveraged retail foreign exchange contract without registration, or provides or signs a leveraged retail commodity contract off-site, is in clear violation of the law. 」

But Kazmi's legal team previouslyDismiss the CFTC's charges, And in response to the CFTC's jurisdiction over proprietary trading business and the submitted evidence, the transactions between My Forex Funds and its customers are not within the jurisdiction of the regulatory agency.

However, in the latest report, it is pointed out that sinceTemporary receiverSince the intervention, the defendant has appeared in court, hired experienced lawyers, complied with court orders, provided asset accounts to the CFTC and testified in court, expressing interest in resolving the case.

Therefore, the judge wrote in a 28-page opinion: "No matter what concerns the CFTC originally had about the possibility of the defendant squandering its assets, they seem to have been greatly reduced. 」

Since Kazmi is very cooperative in this case, the court also believes that a temporary receiver is no longer needed to enforce the court's order, so the contact information of the temporary receiver has been removed at the bottom of the login to the My Forex Funds website.

Although most of the assets were returned, the judge held that My Forex Funds had restricted profits related to 8% of customers with "real accounts", so part of the assets were still frozen.

My Forex Funds - INVESTIGATION EXPLAINED

Readers who are interested in understanding the English commentary of the full text of the document can also watch this video to explain the incident with an affected MFF Live Funded Trader.

4 Comments

  1. I really appreciate Xiaosheng for organizing and analyzing this incident in detail, so that Chinese people who cannot understand (do not understand) foreign languages can easily and clearly understand the beginning and end of the incident.
    It seems that I just took the exam this time, and I really confessed, and I recognized a loss of$499🥲.

  2. I am also a victim. I failed the first exam. In the second exam, the first level was almost over, and I encountered this incident.

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