Singapore-based proprietary company MPFunds has closed its operations, citing regulatory challenges. This step has left traders with no clear guidance on potential compensation. Prop Firm Match, an aggregator of prop firms, confirmed on X that it had no prior warning of MPFunds' decision. The latter claimed that a shift in Singapore's regulations has impacted its business.
Impact on Traders
In a letter addressed to clients, MPFunds' CEO Dean Wong expressed regret over the closure, explaining that recent changes in regulatory enforcement had led to the firm's bank cutting off services without notice. The closure reportedly came despite MPFunds submitting all necessary legal documentation and appealing to reinstate its banking services.
“Due to the local landscape's regulatory decisions and strict enforcement, our bank has unanimously terminated all services to us without sharing the reason,” Wong informed on MPFund's website. “Despite the provision of all the necessary evidence and legal documents requested from the bank, appeals to reinstate the account were closed without any room for negotiations.”
Traders who had active accounts with MPFunds now face an uncertain future, with no confirmation from the firm about whether compensation will be provided. Prop Firm Match has stepped in, offering some relief to traders who uploaded proof of purchase to their platform, with free challenge accounts available depending on the status of their MPFunds accounts.
The Fall of MPFunds
Wong's open letter painted a picture of a company that had once thrived on rewarding its traders but was ultimately undone by a combination of regulatory pressures and internal challenges. He also revealed that MPFunds had been grappling with increasing suspicious activities on its platform, with a small minority of traders undermining the firm's reward structure.
“In addition, an increase in prohibited and suspicious activities amongst our users in recent months has also been found, where traders collectively take advantage of our platform. Investigations into the matter were conducted, and although most traders were not affected, a very small minority threatened the integrity of our reward structure,” Wong added.
Despite these operational challenges, Wong made it clear that the closure wasn't a failure of the company's vision but rather a consequence of external forces. “I didn’t fail the system; the system failed me. This decision was not made lightly, and I am truly sorry for what happened. I sincerely seek your kind understanding during this difficult time.”
