⚠️ REGULATORY WARNING - COMPANY STATUS: INACTIVE/REBUILDING

MyForexFunds was shut down by regulatory authorities in September 2023. The U.S. Commodity Futures Trading Commission (CFTC) and Canadian authorities took action against the company.

UPDATE (May 2025): The CFTC case was dismissed after a federal judge found the CFTC included misleading statements in its filings. MFF was awarded attorney's fees.

This article is maintained for historical and educational purposes only.MyForexFunds is not currently accepting new traders. Many users have reported frozen accounts and blocked funds.

Looking for active alternatives? Consider FTMO,Apex Trader Funding, orFunded Next.

Home/Articles/MyForexFunds Case Study
CLOSED SEPTEMBER 2023 • HISTORICAL REFERENCE ONLY

The MyForexFunds Shutdown: Inside the $300M CFTC Case, Legal Victory, and What It Means for Prop Trading

How a federal regulator's misconduct led to the dismissal of fraud charges against one of the industry's largest prop firms — and what traders need to learn from this unprecedented case.

Updated: November 23, 2025
15 min read
Case Study

📊 MyForexFunds: By The Numbers

2020
Founded
135,000+
Traders Affected
$310M+
Fees Collected
$65M+
Payouts (Before Shutdown)
15,000+
Traders Funded
Sept 2023
Shutdown Date
May 2025
Case Dismissed
24+ Mo
Time Offline

What Was MyForexFunds?

MyForexFunds (MFF) was a Canadian proprietary trading firm that launched in 2020 and quickly became one of the industry's most popular platforms before its dramatic shutdown in September 2023.

The Rise of MFF

Founded by Murtuza Kazmi and operating as Traders Global Group Inc., MyForexFunds was headquartered in Vaughan, Ontario, Canada. The company offered traders the opportunity to access leveraged capital after passing evaluation challenges — a business model that has exploded in popularity since 2020.

🌟 What Made MFF Special

MFF's killer feature was weekly payouts — a rarity in an industry where most firms make traders wait 14-30 days between withdrawals.

This weekly payout schedule was revolutionary and became MFF's primary selling point. While FTMO and other competitors required bi-weekly or monthly withdrawal requests, MFF traders could request payouts every single Friday.

By September 2023, MFF had achieved remarkable growth:

  • Funded over 15,000 traders worldwide
  • Paid out more than $65 million in profits
  • Collected over $310 million in fees from 135,000+ customers
  • Built a reputation for fast, reliable payouts

MFF's Programs

The firm offered two main evaluation paths:

Rapid Program (1-Step)

  • • Single 10% profit target
  • • 5% maximum drawdown
  • • Instant funding after passing
  • • Popular with experienced traders

Evaluation Program (2-Step)

  • • Phase 1: 8% profit target
  • • Phase 2: 5% profit target
  • • 10% maximum drawdown
  • • More forgiving for conservative traders

Trading Conditions

MFF allowed flexible trading strategies that many firms restricted:

  • News trading without restrictions
  • Expert Advisors (EAs) and automated trading
  • Weekend holds (positions over the weekend)
  • High-frequency trading and scalping
  • No minimum hold times

Account sizes ranged from $5,000 to $200,000, with the ability to merge multiple funded accounts up to $2.5 million total allocation — making MFF attractive to serious professional traders.

The Community

MFF built an active trading community with Discord channels, educational content, and responsive customer support. Traders praised the firm's transparency and the speed of payout processing.

Trustpilot Rating (Before Shutdown)

4.5/5

Based on thousands of reviews

At its peak in mid-2023, MyForexFunds was processing hundreds of payouts weekly and appeared to be a legitimate, thriving business. Traders worldwide considered MFF one of the top alternatives to established firms like FTMO and Apex Trader Funding.

Then everything changed on September 1, 2023.

The Shutdown: September 1, 2023

On the morning of September 1, 2023, traders attempting to log into their MyForexFunds accounts were met with error messages. Within hours, panic spread across trading Discord servers, Reddit forums, and social media.

The company had been shut down overnight.

What Happened

The U.S. Commodity Futures Trading Commission (CFTC), in coordination with Canadian regulatory authorities, executed a coordinated action against MyForexFunds:

  • All trading suspended immediately
  • Bank accounts frozen by court order
  • 135,000+ traders locked out of their accounts
  • Website taken offline
  • No prior warning to customers

⚖️ Legal Actions Taken

  • U.S. District Court (New Jersey): CFTC filed Civil Action No. 3:23-cv-11808
  • Ontario Superior Court of Justice: Canadian authorities appointed a receiver
  • Court Date: September 11, 2023
  • Defendants: Traders Global Group Inc., Murtuza Kazmi (CEO), and others

Trader Impact

The shutdown left tens of thousands of traders in financial limbo:

Funded Traders

15,000+ funded traders had their live accounts frozen mid-trade. Some reported:

  • • Pending withdrawals blocked
  • • Profits earned but not paid
  • • Open positions forcibly closed
  • • Loss of income source

Challenge Traders

120,000+ traders in evaluation:

  • • Lost access to active challenges
  • • Fees paid but no service received
  • • No refunds issued
  • • Progress reset to zero

Social media erupted with traders sharing their stories. Some had just passed their evaluations and were waiting for their first payout. Others had pending withdrawals of tens of thousands of dollars. Many had invested significant capital into multiple challenge attempts.

"I had $47,000 in pending withdrawals. I'd been trading with MFF for over a year, withdrawn six figures total, and never had a problem. Then one day I woke up and it was all gone. No warning. No email. Nothing."

— Reddit user, r/Forex

The Initial Reaction

The trading community was shocked. While prop firm failures had happened before (TopStepTrader, Earn2Trade, and others faced issues), MFF's shutdown was different:

  • Scale: 135,000+ affected traders
  • Reputation: MFF was considered legitimate and had paid out $65M+
  • Regulatory involvement: Not a simple insolvency — federal fraud charges
  • No warning: Even insiders appeared blindsided

But what exactly had MFF done wrong? The CFTC's complaint would shock the industry even further.

📅 Complete Timeline

1
2020 • Founded

MyForexFunds launched in Vaughan, Ontario, Canada. Founded by Murtuza Kazmi as Traders Global Group Inc. Initial focus on weekly payouts as competitive advantage.

2
2021-2023 • Rapid Growth
  • • Funded 15,000+ traders
  • • Paid out $65M+ in profits
  • • Collected $310M+ in fees from 135,000+ customers
  • • Known for weekly payouts (unique feature)
  • • Built 4.5/5 Trustpilot rating
3
September 1, 2023 • Shutdown

U.S. CFTC and Canadian regulators freeze assets without warning.

  • • All trading suspended
  • • Bank accounts frozen
  • • 135,000+ traders locked out
  • • Court date scheduled Sept 11, 2023
4
September 2023 • CFTC Files Complaint

$300M fraud allegations:

  • • Acting as counterparty (conflict of interest)
  • • Hidden commissions
  • • Price manipulation
  • • Unfair account terminations
  • • Personal enrichment (luxury purchases)
5
March 2024 • Motion for Sanctions

MFF discovers CFTC lied in filings:

  • • CFTC claimed Kazmi transferred funds to personal account
  • • Reality: Those were TAX PAYMENTS, not personal enrichment
  • • MFF files motion for sanctions against CFTC
  • • Alleges CFTC acted in "bad faith"
6
May 2025 • VICTORY: Case Dismissed

Special Master's Report and federal judge ruling:

  • • ✅ CFTC case DISMISSED
  • • ✅ Judge found CFTC "acted willfully and in bad faith"
  • • ✅ CFTC sanctioned (unprecedented)
  • • ✅ MFF awarded attorney's fees
  • • Historic: Federal regulator sanctioned for misconduct
7
October 2025 • Reconnection Phase

MFF begins rebuild process:

  • • Ontario court scales back receivership
  • • CEO Murtuza Kazmi first public statement
  • • Financial and operational review underway
  • • Unwinding receivership process
  • • Status: Not yet accepting new traders

CFTC's Fraud Allegations

The CFTC's complaint, filed in U.S. District Court for the District of New Jersey (Civil Action No. 3:23-cv-11808), alleged that MyForexFunds operated a $300+ million fraudulent scheme.

The allegations were serious and wide-ranging:

1. Acting as Counterparty (Conflict of Interest)

The CFTC alleged that MFF acted as the direct counterparty to customer trades, meaning:

When a funded trader placed a trade, MFF was on the other side of that trade. If the trader made money, MFF lost money. If the trader lost money, MFF kept it.

This creates a massive conflict of interest because MFF profits when traders fail and loses when traders succeed — the exact opposite of what they marketed.

The CFTC claimed MFF used a proprietary liquidity provider called "MFF LP" that Kazmi controlled, essentially trading against their own customers.

2. Hidden Commissions and Fees

The complaint alleged MFF charged hidden commissions by:

  • Widening spreads beyond disclosed amounts
  • Charging undisclosed markup on trades
  • Failing to disclose the full cost structure

3. Price Manipulation

The CFTC alleged that MFF manipulated order execution prices to:

  • Give traders worse entry prices than requested
  • Trigger stop-losses prematurely
  • Increase the likelihood of traders hitting drawdown limits

4. Unfair Account Terminations

The CFTC claimed MFF systematically terminated profitable trader accounts using vague rule violations as pretexts, allowing them to:

  • Avoid paying out profits
  • Keep challenge fees from successful traders
  • Eliminate their own losses (as counterparty)

5. Personal Enrichment

The CFTC alleged that CEO Murtuza Kazmi used customer funds for personal luxury purchases:

  • Luxury vehicles
  • High-end real estate
  • Personal expenses unrelated to business operations

⚖️ CFTC's Requested Remedies:

  • • Permanent trading ban for Kazmi and related entities
  • • Full restitution to customers ($300M+)
  • • Civil monetary penalties
  • • Disgorgement of ill-gotten gains

The allegations painted a picture of systematic fraud — a company that marketed itself as helping traders succeed while secretly profiting from their failure.

But as the case progressed, a shocking revelation would turn everything upside down.

The Plot Twist: The CFTC Lied

In March 2024, MyForexFunds filed a bombshell motion: they accused the CFTC of including false and misleading statements in their original complaint.

What MFF discovered would shock the legal community and ultimately lead to the case's dismissal.

The "Personal Enrichment" Lie

The CFTC's complaint prominently featured allegations that CEO Murtuza Kazmi had transferred company funds to his personal bank account for luxury purchases.

CFTC's Original Claim:

"Kazmi transferred substantial funds from corporate accounts to his personal account, which he then used for personal enrichment including luxury vehicles and real estate."

This allegation was central to the CFTC's fraud case. It suggested Kazmi was stealing customer money for personal gain.

But there was a problem: It wasn't true.

What Actually Happened

MFF's lawyers discovered that the "suspicious transfers" the CFTC cited were actually:

✓ TAX PAYMENTS

The transfers were legally required tax payments that Kazmi made on behalf of the corporation. As a Canadian business owner, he was required to make quarterly tax payments.

The CFTC knew these were tax payments — they had access to the tax records — but chose to characterize them as "personal enrichment" anyway.

The CFTC Knew

Here's what made this particularly egregious:

  • The CFTC had access to MFF's complete financial records
  • The tax documentation was clearly labeled
  • CFTC attorneys reviewed these records before filing
  • They chose to misrepresent them anyway

In legal terms, this is called "acting in bad faith" — intentionally misleading the court.

MFF's Motion for Sanctions

In March 2024, MFF filed a formal motion requesting the court sanction the CFTC for:

  • Submitting false statements to the court
  • Failing to correct those statements when discovered
  • Acting in bad faith throughout the proceedings
  • Causing significant harm to MFF's reputation and business

📋 Special Master Appointed

The court appointed a Special Master — an independent legal expert — to investigate MFF's allegations against the CFTC.

This is extremely rare. It meant the judge took MFF's allegations seriously enough to order a formal investigation into the federal regulator's conduct.

Other Questionable CFTC Claims

As MFF's defense deepened, other CFTC allegations began to unravel:

Counterparty Allegation

CFTC claimed: MFF acted as direct counterparty

Reality: MFF used standard B-book model (common in prop trading). They disclosed this in their terms of service.

Price Manipulation

CFTC claimed: Systematic price manipulation

Reality: MFF showed they used third-party price feeds with no evidence of manipulation beyond normal market volatility.

The pattern became clear: the CFTC had taken standard industry practices, mischaracterized them, and built a fraud case on selective interpretation and outright falsehoods.

Case Dismissed: May 2025

In May 2025, the Special Master submitted their report to the federal judge. The findings were damning for the CFTC.

✓ VICTORY FOR MYFOREXFUNDS

The court found that the CFTC "acted willfully and in bad faith" by including misleading statements in its initial complaint.

The entire case was DISMISSED, and the CFTC was ordered to pay MFF's attorney's fees — a rare outcome when suing a federal regulator.

The Ruling

The federal judge's ruling included several key findings:

  • CFTC Misconduct: The CFTC knowingly included false statements about tax payments being personal enrichment
  • Bad Faith: The CFTC had access to correct information but chose to misrepresent it
  • Sanctions: The CFTC was sanctioned — an extremely rare punishment for a federal agency
  • Attorney's Fees: CFTC ordered to reimburse MFF for legal costs

📰 Historic Precedent

This case represents one of the rare instances where a federal financial regulator was sanctioned for misconduct in enforcement proceedings. Legal experts called it a "significant check on regulatory overreach."

What This Means

The dismissal does NOT mean MyForexFunds was entirely innocent of all practices. It means:

  • The CFTC's fraud case was based on false information
  • The regulator acted improperly in bringing the case
  • The court found the evidence insufficient to support fraud charges
  • MFF's business practices, while aggressive, were not proven criminal

However, by this point, MyForexFunds had been offline for 20+ months. The damage was done.

Current Status: October 2025

As of October 2025, MyForexFunds is in a "rebuilding phase" but is NOT accepting new traders.

Recent Developments

Ontario Court Order (Oct 2025)

Canadian court scaled back receivership, allowing MFF to begin operational review.

CEO Statement

Murtuza Kazmi issued first public statement since shutdown, acknowledging legal victory and expressing intention to "reconnect with the trading community."

Trader Accounts

Most trader accounts remain frozen. No timeline announced for fund returns or account reactivation.

⚠️ WARNING

Even though MFF won their court case, they are NOT currently operational. Do not send money or attempt to sign up. The website remains offline, and customer service is unavailable.

Will MyForexFunds Come Back?

This is the question every former MFF trader wants answered. The honest answer: It's uncertain.

Reasons They Might Return

  • Legal Victory: The CFTC case was dismissed with prejudice
  • Brand Recognition: 135,000+ people know the brand
  • Proven Model: They paid out $65M+ before shutdown
  • Receivership Unwinding: Court allowing operational review

Reasons They Might Not

  • Trust Damage: 24+ months of frozen accounts destroyed trader confidence
  • Market Saturation: Competitors filled the gap (FTMO, Apex, Funded Next)
  • Regulatory Scrutiny: They'll face intense monitoring if they relaunch
  • Financial Burden: Restarting requires massive capital investment

Our Assessment: While technically possible, a successful comeback faces enormous challenges. Even if MFF relaunches, they would need to completely rebuild trust, likely operate under different branding, and implement transparent third-party oversight to attract traders.

Lessons for Prop Traders

The MyForexFunds saga offers critical lessons for anyone trading with prop firms:

1. Diversify Across Firms

Never put all your eggs in one basket. Spread your funded accounts across multiple prop firms. If one shuts down, you don't lose everything.

2. Withdraw Profits Regularly

Don't let profits accumulate in your trading account. Withdraw frequently — weekly or bi-weekly if possible. Money in your bank account is yours; money in a prop firm account is not.

3. Research Regulatory Status

Check if a prop firm is registered with financial authorities. While MFF's case shows regulators can overreach, legitimate firms usually have some form of oversight.

4. Understand the Business Model

Know whether a firm uses A-book (passes trades to real market) or B-book (acts as counterparty). B-book creates conflict of interest but isn't automatically fraudulent if disclosed.

5. Red Flags to Watch For

  • • Firms that are also the broker
  • • Unusually high payout percentages (90%+)
  • • Vague terms of service
  • • Frequent rule changes
  • • No proof of payouts

6. Document Everything

Keep records of all transactions, correspondence, and account statements. Screenshots of payouts, emails, and trading history can be crucial if something goes wrong.

💡 Pro Tip

The most successful prop traders treat these firms as business partners, not employers. Maintain multiple partnerships, protect your profits, and always have a backup plan.

Industry Impact and Implications

The MyForexFunds case has had lasting effects on the prop trading industry:

Regulatory Implications

The CFTC's defeat has created uncertainty about how prop firms will be regulated going forward:

  • Other regulators may be more cautious about aggressive enforcement
  • Prop firms may gain clarity on what business models are legally acceptable
  • Traders have precedent showing regulators can overreach

Competitive Landscape

MFF's absence created a vacuum that competitors eagerly filled:

  • FTMO solidified position as industry leader
  • Apex Trader Funding captured MFF's futures trading audience
  • Funded Next and other newer firms grew rapidly
  • Firms began emphasizing transparency and regulatory compliance

Trader Behavior Changes

Traders became more cautious and informed:

  • Increased scrutiny of prop firm business models
  • More frequent profit withdrawals
  • Portfolio diversification across multiple firms
  • Demand for third-party verification of payouts

Safe, Active Alternatives to Consider

If you're looking for active, reliable prop firms with strong track records, consider these established alternatives:

FTMO

Most established (10+ years), excellent reputation, comprehensive trader education, proven payout history

Read FTMO Review

Apex Trader Funding

90/10 profit split, no daily loss limit, futures focus, transparent business model, rapid growth

Read Apex Review

Funded Next

Express evaluation, competitive pricing, growing reputation, flexible trading rules, solid support

Read Funded Next Review

📊 Compare All Prop Firms

Want to see a complete side-by-side comparison? Check out our comprehensive prop firm comparison tool.

Compare All Prop Firms →

Conclusion

The MyForexFunds story is one of the most dramatic episodes in prop trading history. What started as a regulatory shutdown over alleged $300M fraud ended with the regulator itself being sanctioned for misconduct.

The key takeaways:

  • MFF won their legal battle, proving the CFTC's fraud case was built on false claims
  • But 135,000+ traders still lost access to their accounts for 24+ months
  • The case exposed both regulatory overreach AND questionable industry practices
  • Traders must be cautious, diversify, and protect their profits

As of November 2025, MyForexFunds remains offline with no confirmed relaunch date. While the company has indicated rebuilding efforts, traders should not expect a return to operations in the near term. For active trading opportunities, explore the established alternatives listed above.

This case will likely be studied for years as both a cautionary tale about prop firm risk and a landmark example of regulatory accountability. Whatever happens next, the MyForexFunds saga has permanently changed how traders and regulators view the prop trading industry.

Frequently Asked Questions

What happened to MyForexFunds?

MyForexFunds was shut down by U.S. and Canadian regulators on September 1, 2023. The CFTC filed a complaint alleging $300M in fraud. However, in May 2025, the case was dismissed after a federal judge found the CFTC included misleading statements in its filings. The company is currently rebuilding as of October 2025 but is not accepting new traders.

Was MyForexFunds a scam?

The CFTC alleged fraud in September 2023, but the case was dismissed in May 2025 after the court found the CFTC acted in bad faith and included false statements. A Special Master recommended sanctions against the CFTC itself. The legal outcome suggests the fraud allegations were not substantiated, though this doesn't mean all of MFF's business practices were optimal.

Can I still use MyForexFunds in 2025?

No. MyForexFunds is not currently accepting new traders as of November 2025. The company has been offline since September 2023. Many users report frozen accounts and blocked funds. Consider active alternatives like FTMO, Apex Trader Funding, or Funded Next instead.

Will MyForexFunds come back?

As of October 2025, MyForexFunds announced it is unwinding the receivership and conducting a full operational review. However, they are not yet accepting new traders. Whether they will fully resume operations remains uncertain after 24+ months offline and significant trust damage. Even if they return, rebuilding trader confidence will be extremely difficult.

What should traders learn from the MyForexFunds case?

Key lessons: (1) Diversify across multiple prop firms, (2) Withdraw profits regularly — don't let them accumulate, (3) Research regulatory status and business models, (4) Watch for red flags like firms acting as their own broker, (5) Document everything, (6) Understand that even legitimate firms can face regulatory issues that freeze your funds.

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