MyForexFunds weighs relaunch after asset freeze lifts, but OSC scrutiny still hangs over firm
Most of MyForexFunds’ assets are coming back under company control after more than two years in legal limbo, setting up a possible restart for one of the world’s largest “prop firm” simulated trading platforms, according to Bloomberg.
The Ontario Superior Court has unfrozen nearly all funds and granted MyForexFunds’ parent, Traders Global Group Inc., access to its client data.
The assets and data had been under a court‑appointed receiver since early 2024, following earlier directions from the Ontario Securities Commission (OSC).
As a condition of the new order, the receiver will keep $10m in escrow and retain another $500,000 for expenses, according to Bloomberg.
This Canadian decision follows a decisive win for MyForexFunds in the US, where a federal judge dismissed with prejudice all allegations brought by the Commodity Futures Trading Commission (CFTC), sanctioned the regulator and awarded attorney’s fees to the company, as stated in the press release.
Bloomberg reported that four CFTC attorneys and an investigator were placed on administrative leave after the ruling.
Regulatory action in 2023 had effectively shut down the business.
The CFTC sued MyForexFunds in August 2023, alleging the firm ran a Ponzi‑like scheme by collecting millions in sign‑up fees from customers who traded with fictitious capital in a simulated market, while strict rules and conditions increased the odds they would fail.
The regulator alleged that “substantially all of these so‑called profits come from fees that Traders Global collected from other customers, in a manner similar to a Ponzi scheme.”
Bloomberg reported that the CFTC, working with the OSC, secured an asset freeze in part on claims that CEO Murtuza Kazmi moved millions into a personal account.
MyForexFunds’ lawyers said the transfer was actually a payment to Canadian tax authorities and that CFTC staff knew this before filing the case.
The US court’s dismissal with prejudice means the CFTC’s action cannot be refiled.
The OSC has been investigating MyForexFunds and Kazmi since 2023, alleging the firm and its founder may have traded securities without registration and may have provided false and misleading information, among other concerns.
The regulator has not issued a formal notice of allegations, and the court order indicates the investigation is ongoing.
As reported by Bloomberg, the OSC said it does not comment on the status or existence of investigations.
Before operations were halted, MyForexFunds marketed itself as a foreign exchange proprietary trading firm that let customers trade simulated accounts funded with fictitious capital in exchange for a sign‑up fee.
If customers passed an initial evaluation and followed specific trading rules, they could receive a share of their theoretical profits.
The higher the fee, the greater the simulated capital available.
Bloomberg reported that the firm operated in more than 80 countries and collected about $310m from 135,000 customers between 2021 and 2023.
Archives of its website said customers could “earn as a professional trader” and promoted access to an account of up to $300,000 for a $1,389 registration fee, subject to evaluation, under the motto “If you lose, we lose.”
The press release stated that MyForexFunds grew from a Canadian start‑up into what it described as the world’s largest proprietary trading firm, supporting traders in more than 80 countries, before the shutdown.
When the receivership and freezes took effect, the company said its global workforce was disbanded instantly and customers worldwide lost access to support and service.
With restrictions now eased, MyForexFunds plans a full financial, operational and technical review with its advisers and key vendors, as per the press release.
Bloomberg reported that the company intends first to retrieve client data so it can “analyze it, evaluate it and then make a decision” on restarting.
The press release noted that the website is expected to come back online shortly to provide updates.
The case has unfolded against the backdrop of a fast‑growing “prop firm” segment serving aspiring retail traders.
Bloomberg reported that firms with similar simulated models, including FTMO Holding and FundingPips Corp., continue to attract users globally, with many now explicitly stating on their websites that trading is “simulated” and funds are “fictitious.”
Kazmi said any potential relaunch of MyForexFunds would involve updating website language to make it clearer that customers are not trading real money and that legal counsel has worked on “updating the disclosures and the wordings.”
Reflecting on the last two years, Kazmi called the period “incredibly challenging” for the company, staff and customers, according to the press release.
Bloomberg separately quoted him saying the court order is “a great, great weight lifted off the shoulder” and “a step in the right direction,” while emphasizing that “there are still a bunch of other steps to go.”
