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MyForexFunds suspended : Frozen funds due to regulatory issues

MyForexFunds suspended : Frozen funds due to regulatory issues

MyForexFunds, a highly utilized prop firm platform, is under investigation and facing accusations of fraud by the U.S. Commodity Futures Trading Commission (CFTC) and the Ontario Securities Commission. The company has had to halt its operations, and its clients' accounts are currently frozen until further notice. What happened? We will dissect this case in this article.


Mis à jour le 09/02/2023 à 10:55

myforexfunds regulation

Regulatory action against MyForexFunds : The prop firm suspended, what happened ?

On the night of August 31 to September 1, 2023, Prop Firm MyForexFunds announced to its users that its platform was blocked, and its funds were frozen due to regulatory issues. Its clients then saw their trading accounts suspended unexpectedly. Many of them, with thousands of euros and dollars, wondered how they would be able to recover their funds.

The announcement was made through a statement published on the Prop Firm’s website, revealing that the company had only discovered the day before that securities regulators in Canada and commodities regulators in the United States had issued freeze orders, prohibiting the trading of securities and access to bank funds.

The funds of MyForexFunds and its clients are frozen, with no means of intervention, until these legal proceedings are lifted or modified.

MyForexFunds platform account freeze : Company’s statement

Bank accounts of the Prop Firm and client funds froze

As a reminder, MyForexFunds is a prop firm platform offering various forex trading plans for both novice and experienced traders. These prop firm challenges have gained significant popularity in the trading sector over the past few months. The sudden freezing of accounts by regulatory bodies such as those in the United States and Canada can raise questions about such platforms.

Naturally, MyForexFunds’ clients are concerned following this announcement and are wondering how to retrieve their funds from the platform. CEO Murtuza Kazmi briefly addressed this on the official X account (formerly Twitter) of the site via video, delivering a concise message in an attempt to reassure clients.

The CFTC accuses MyForexFunds of over $300 million fraud

The reasons behind the suspension of the MyForexFunds website were not disclosed by the prop firm and remained unclear until the Ontario Securities Commission and the CFTC in the United States officially released accusations against Traders Global Group Inc. (TGG) and its CEO, Muhammad Murtuza Kazmi.

Ontario Securities Commission Allegations

On August 29, 2023, the Ontario Securities Commission (OSC) in Canada issued a suspension order against Traders Global Group Inc. (TGG) and its website This decision was prompted by concerns regarding the activities of the prop firm and Kazmi.

myforexfunds temporary order canada
Temporary order : Traders Global Group Inc. and Muhammad Murtuza Kazmi Case

The Toronto Market Regulator is currently investigating My Forex Funds and Kazmi for the following reasons :

  1. Harmful Trading Simulation : For the vast majority of investors, it is suspected that TGG simulated transactions with various rules designed to benefit TGG at the expense of investors.
  2. Use of Investor Funds : There are suspicions surrounding TGG and Kazmi regarding the use of investor funds to pay purported “profits” to other investors and for Kazmi’s personal expenses.
  3. Potential Fraudulent Activities : TGG and Kazmi are suspected of engaging in fraudulent activities in violation of Ontario securities law.
  4. Non-registration and Securities Distribution : TGG may have operated in the securities trade without proper registration, which is against the law, and may have distributed securities without filing a prospectus.
  5. Provision of Misleading Information : Allegations suggest that TGG and Kazmi provided false and misleading information to the Commission.

Following the issuance of the order under Section 127 of the Ontario Securities Act, MyForexFunds was compelled to temporarily suspend all of its operations.

CFTC Complaint Against “My Forex Funds”

On September 1, 2023, the Commodity Futures Trading Commission (CFTC) filed a complaint against Murtuza Kazmi and his companies, Traders Global Group Inc., for alleged fraud in connection with their trading activities under the name ‘My Forex Funds.’ The CFTC accuses the prop firm of fraudulently extracting over $300 million from clients aspiring to become professional traders, shedding light on a serious financial fraud case in the industry.

According to the complaint, Kazmi allegedly deceived over 135,000 clients into believing that they were investing with third parties, while Traders Global was, in fact, their primary counterparty. Deceptive tactics were purportedly used to diminish clients’ profits and increase their losses.

Furthermore, a substantial portion of the funds is said to have been used by Kazmi to purchase luxury assets and make significant transfers to his personal accounts.

As a result, the CFTC is seeking restitution for investors, financial penalties, trading and registration bans, and a permanent injunction against future violations of the Commodity Exchange Act (CEA).

In this case, an initial hearing date is scheduled for September 11th in the United States to determine the fate of the freeze orders. Another hearing is also planned in Canada later in the week.

What impact could the My Forex Funds case have on Prop Firms ?

This case could potentially have significant consequences for the future of the prop firm market, and whether these consequences will be positive or negative remains to be seen.

First and foremost, it’s important to note that, as of today, no regulations have been put in place for prop firm companies. In other words, prop firm platforms like My Forex Funds or FTMO do not require a specific license to operate.

The SEC, the U.S. financial regulator, had already expressed its intention for prop firms to fall under the oversight of FINRA (Financial Industry Regulatory Authority) to enhance transparency within the industry.

However, the adoption of such regulations could take time to be implemented. Nevertheless, regulation is essential to protect users and ensure the integrity of the financial market in a relatively new sector like prop firms. This is similar to what occurred with forex trading in the 2000s to 2010s or more recently with cryptocurrencies.

The platform’s clients are understandably awaiting further information to understand when and how they can recover their funds or whether the platform may reopen. This is a story to follow closely…

⚠️ This article is published for informational purposes and should not be considered as investment advice. Crypto-currency trading involves risk and it is important not to invest more than you can afford to lose.

InvestX is not responsible for the quality of the products or services presented on this page and shall not be held liable, directly or indirectly, for any damage or loss caused as a result of using any goods or services highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.



Léa is part of the InvestX team which supports members in their training. She is also a crypto enthusiast who follows the market closely. For the site, she writes articles to help readers decipher the news and what happens day after day in the world of blockchains.

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