The controversial prop trading firm The Funded Trader (TFT) has announced plans to launch a new entity called The Futures Traders, aimed at futures market traders. While details remain scarce, the announcement has been met with significant backlash from clients and traders.
The Funded Trader Lacks Trust in the Prop Trading Industry
On July 26, 2024, The Funded Trader announced on social media that it was launching The Futures Traders, a new trading firm focused on the futures market. TFT stated, "Stay tuned for more details, including our website and dashboard preview," without providing much additional information.
The announcement post on X (formerly Twitter) received hundreds of comments, mostly negative. Among those commenting was Matthew Leech, owner of the competing firm MyFundedFX. TFT appears to be following in Leech's footsteps, as he also operates an independent futures trading business called My Funded Futures.
"Please don't ruin futures for the rest of us. I'm begging you," Leech commented, referring to the controversies surrounding TFT and accusations from many investors that the company allegedly blocks payouts of funds owed to them.
In March, the company claimed to have paid out $17 million to its clients in 2024 alone. However, traders have reported widespread issues with obtaining their funds. Angelo Ciaramello, the Founder and the CEO of the company, defended TFT, stating that payouts were being processed, albeit more slowly due to an "internal audit" to check for potentially prohibited trading practices.
Meanwhile, the company has also announced a "restructuring of its business" and relocation to the Cayman Islands, along with promises to distribute all pending payouts. In May, the firm announced a new partnership that was supposed to unlock blocked funds, though details about this partnership were not provided.
“Want to Rug Pull Futures Too?”
Allen de Koker, an entrepreneur and trader, commented on TFT's latest announcement: "Your past actions raise serious concerns. Traders, be cautious and do your own research before getting involved with this company".
Comments on X accuse TFT of an alleged "rug pull" and of intending to do the same with the new company. Financial influencer BrianStonk asked, "Want to rug pull futures too?"
In late March, the company's problems escalated, leading to a temporary suspension of operations. After a three-week blackout, the platform, operated by Easton Consulting Technologies, came back online, with some functionalities initially unavailable.
The prop firm's situation is being closely watched, as it has a significant number of retail clients, exceeding 80,000 accounts. While Ciaramello claims that allegations of a rug pull and deliberate blocking of client payouts are "propaganda" and attacks from competitors, it's hard to ignore the comments from people claiming to have been allegedly defrauded by TFT.
