In August 2023 the US commodities regulator, the CFTC, sued the prop firm My Forex Funds and froze its money. In May 2025 a federal judge threw the case out for good, as a punishment for false statements the CFTC had made to the court. The defendants' lawyers call that a historic win. The question of how the firm treated its traders was never put to a trial, so it was never answered either.
If you ever bought a prop-firm challenge, this case is worth knowing. It shows what happens to your account, your fee and your pending payout when a regulator walks in. It also shows that regulators can be wrong.
Quick timeline
What did the CFTC say My Forex Funds did?
The complaint charged My Forex Funds (the New Jersey and Canadian companies called Traders Global Group, and their founder Murtuza Kazmi) with fraud in retail forex trading. These were allegations. None was ever proven in court.
In short, the CFTC said customers believed they were trading the firm's money against outside "liquidity providers" (the banks and brokers that supply prices). The complaint says the firm was in fact on the other side of almost every trade. It also says the firm used the drawdown limit as a pretext to close accounts, and used software to delay orders or give worse prices.
The complaint adds a money claim: about $310 million in fees came in, about $137 million went out, mostly as payouts, and net income was about $172 million. It also says Kazmi spent some of the proceeds on luxury homes and cars.
The CFTC also asked for a "statutory restraining order", an emergency order that freezes assets before the other side can reply. On 29 August 2023 a judge signed one. The companies went into receivership, which means a court-appointed manager took charge. My Forex Funds stopped operating.
What went wrong with the CFTC's case?
The trouble centered on one number. A CFTC investigator's sworn statement described transfers of CAD 31.5 million from a company bank account as going to an unidentified account of Kazmi's. The CFTC wanted the freeze partly because the founder might move money out of reach.
The special master found the transfers were corporate tax payments to the Canadian tax authority. He wrote that staff at the Ontario Securities Commission, the Canadian regulator working with the CFTC, told the CFTC more than once what the transfers really were. One email of 17 August 2023 said the money went to the Canada Revenue Agency, Canada's tax authority. That was a week before the investigator signed the statement on 24 August. The wire records also carried tax-payment codes.
Then came the delay. The CFTC filed a corrected declaration on 7 March 2024. That was the last day of the 21-day window the court rules give a party to fix a mistake before sanctions can be sought. By then the case was more than six months old.
At the hearing in September 2024, the CFTC accepted that its conduct had been negligent, and its lead attorney agreed that his own work was careless. The special master went further. In his report of 30 April 2025 he found the CFTC acted "willfully and in bad faith on several occasions". He said the false statement probably influenced the court's decisions on the freeze. He recommended dismissal with prejudice, which means the CFTC cannot file the case again, and that the defendants be repaid the legal fees of the sanctions fight.
The report covers only the CFTC's conduct about the CAD transfers. The special master made no finding on whether My Forex Funds misled traders.
What did the judge decide?
On 13 May 2025 Judge Kiel adopted the report, granted the sanctions motion, dismissed the complaint with prejudice and set aside the defendants' separate motion to dismiss as moot. The same day the CFTC's Acting Chairman, Caroline Pham, issued a statement saying the agency must accept accountability. She called the conduct the court described inexcusable and said some staff had been placed on administrative leave while the matter was investigated.
On 11 July 2025 the judge approved the defendants' legal fees for the sanctions fight, ordered the CFTC to pay them, and closed the case. The docket entries we could read end there, with no appeal.
What happened to traders and payouts?
Here the record gets thin, so everything below is reported, not proven.
Finance Magnates reported on 10 December 2025 that My Forex Funds had regained control of its Canadian assets after a Canadian court approved a handover. In a message reported on 2 February 2026, Kazmi said that anyone who had asked for a payout before the freeze should expect to hear from the firm soon. The report gives no numbers on how many requests or how much money.
On 28 September 2026 Finance Magnates reported that Traders Global had sold the MyForexFunds trademarks, website and social accounts to Global Solutions, a Dubai firm. The buyer did not take over Traders Global's liabilities, which the report says are mostly unpaid trader payouts. Traders Global, it says, keeps handling those payouts under a service agreement. On 21 October the same outlet reported that the relaunched program starts on 23 November 2026.
We found no confirmed figure for how much has been paid to traders who were waiting in 2023.
What the other side says
The winning side has its own account. Quinn Emanuel, one of the defendants' law firms, calls the result a "historic" dismissal and describes the fee award as the largest monetary sanction against a US government agency. That is the firm's description of its own case.
Kazmi told Finance Magnates in January 2026 that the business was lawful and in line with industry practice. He said the CFTC treated tax payments as missing money, and that no money was missing. He says MFF paid traders more than $290 million over its life. The complaint counted about $137 million for the period from November 2021, so the two periods differ. These are his claims, and the court made no finding on the merits.
The CFTC's public position is the Acting Chairman's statement of 13 May 2025, which accepts the court's findings and describes reforms. We did not find a later CFTC comment on the brand sale or the relaunch.
What traders can take from it
- A pending payout is only a promise. When a firm is frozen, a payout request is not money in your hands. Request payouts regularly instead of letting a balance sit. If you need a reminder of how prop firms work, start with what is a prop firm.
- Keep dated copies of the rules. Save screenshots or PDFs of the drawdown, payout and refund terms on the day you buy. Rules change. The complaint here was partly about how a drawdown limit was applied, so know your trailing drawdown rule exactly, and test it with the prop firm drawdown calculator.
- Save every request and reply. Keep payout requests, support chats and email confirmations, with times.
- A dismissal is not a verdict on the firm. This one is about the regulator's conduct. Whether a firm's model is fair to traders is a separate question, so read the fine print yourself.
- Keep your own trade record. A journal built from your own broker data, as SetupBook does, shows what you traded and when, so a dispute with a firm starts with facts you hold. The prop firm trading journal guide explains what to log.
Frequently asked questions
Did a court find that MyForexFunds committed fraud?
No. The CFTC's fraud allegations were never decided in court. The judge dismissed the case with prejudice as a sanction against the CFTC, after finding that it made false statements to the court about CAD 31.5 million in transfers.
What does "dismissed with prejudice" mean?
It means the case is over and the CFTC cannot file the same claims again. Here, it was a punishment for the regulator's conduct. It was not a ruling on whether the firm's business was lawful.
Did the CFTC appeal?
The docket entries we could read end on 14 July 2025 with the case closed, and they show no appeal. A lawyer should check the full record on PACER (the US federal court records system) for anything later.
Are MyForexFunds payouts being paid?
The firm says traders who requested payouts before the freeze should expect to hear from it, and a report says Traders Global is still handling those payouts. We found no confirmed totals. If you are owed money, keep your records and contact the firm in writing.
Is MyForexFunds coming back?
The firm announced a relaunch for 23 November 2026, run by Global Solutions, the Dubai company that bought the brand. Finance Magnates reports that the buyer did not take over the old company's liabilities. Read the new terms before paying anything.
Sources
- Complaint, CFTC v. Traders Global Group Inc., 28 Aug 2023, CFTC: the allegations, the $310 million and $137 million figures.
- Report and Recommendation of the Special Master, 30 Apr 2025 (ECF 258), CFTC: the findings on the CAD 31.5 million transfers and the sanctions recommendation.
- Docket, CFTC v. Traders Global Group Inc., 1:23-cv-11808, CourtListener: the order adopting the report (ECF 260), the preliminary injunction (ECF 135) and the case closing.
- Opinion and Order, 11 July 2025 (ECF 269), CourtListener: the fee order that closed the case.
- Acting Chairman Pham statement on court sanctions against the CFTC, 13 May 2025: the CFTC's own response.
- In a blow to the CFTC, US court throws out My Forex Funds lawsuit, Finance Magnates, 14 May 2025: the dismissal as reported.
- Willkie Compliance Concourse, 26 May 2025: a law-firm summary of the ruling.
- Quinn Emanuel on the dismissal, February 2026: the defendants' lawyers' own account.
- My Forex Funds regains control over Canadian assets, Finance Magnates, 10 Dec 2025: the Canadian handover.
- Kazmi on the shutdown, Finance Magnates, 19 Jan 2026: the founder's account.
- Kazmi on payouts, Finance Magnates, 2 Feb 2026: the payout statement.
- MyForexFunds brand assets sold to Dubai-based firm, Finance Magnates, 28 Sep 2026: the brand sale.
- MyForexFunds relaunch announcement, Finance Magnates, 21 Oct 2026: the 23 November relaunch.
This post is based on public sources as of October 30, 2026. Found a mistake? Write to info@setupbook.io.