The prop trading platform My Forex Funds has exclusively shared with Finance Magnates its first official comment to the lawsuit against it by the US commodities regulator, calling the allegations a "grossly inaccurate and incomplete picture of the facts."

Serious Allegations against My Forex Funds

The Commodity Futures Trading Commission's (CFTC CFTC The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss Read this Term) lawsuit named two entities, New Jersey-incorporated Traders Global Group Inc. and Canada-based Traders Global Group Inc., which operate as My Forex Funds, and its CEO, Murtuza Kazmi. The CFTC has also obtained a restraining order and frozen the companies' assets.

"To be clear, My Forex Funds has never defrauded its traders, and we look forward to presenting the truth in court. We regret the hardship that this ill-conceived lawsuit has caused our traders and our staff," My Forex Funds stated in a press release exclusively shared with Finance Magnates.

Apart from the CFTC's lawsuit, the platform is facing backlash in Canada where the Ontario Securities Commission (OSC) brought similar proceeds against it.

My Forex Funds highlighted that the CFTC's lawsuit came "without warning and under seal." The two companies behind the prop trading platform are determined to fight the two regulators in court.

According to the comment, for the lawsuit against the CFTC, the company has engaged Alex Spiro, Rob Zink, Michael Shaheen, and Dakota Speas of Quinn Emanuel Urquhart & Sullivan, LLP, for its legal defense. In Canada, too, the platform has engaged with legal counsel.

Important Notice 📢

Yesterday we learned that, without prior notice or discussion, a provincial securities regulator in Canada and the commodities regulator in the United States issued orders preventing us from trading securities or accessing funds in our bank accounts.

Until… pic.twitter.com/dKpxmx5axT

— MyForexFunds (@MyForexFunds) September 1, 2023

Generating Revenue of $310 Million

My Forex Funds, now temporarily shattered, was one of the most popular prop trading platforms globally. It was established in 2020 and quickly became popular. Similar to other prop trading platforms, My Forex Funds generated revenue from fees collected from traders for taking on its challenges. Successful traders then received capital, and the company later split the profits from trading, if there were any.

According to the CFTC, My Forex Funds generated at least $310 million in fees from more than 135,000 customers who signed up for its trading program since November 2021. The regulator's allegations additionally involve fraud and misappropriation of funds by the CEO.