The MyForexFunds shutdown in August 2023 blindsided over 135,000 traders worldwide. No warning. No notice. Overnight, one of the world's largest retail prop trading firms was frozen — accounts locked, assets seized, business halted. The CFTC and Canadian regulators painted it as a $310 million fraud. Traders were left confused, angry, and in the dark.
But here's what most articles won't tell you: the CFTC's own case was later dismissed — with the regulator sanctioned for misconduct. And as of 2026, MyForexFunds isn't just a cautionary tale. It's coming back.
This is the complete story. No spin. No hype. Just facts.
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MyForexFunds Shutdown & CFTC 2023: The Full Truth — And Why It's Coming Back
Abhay PrakashApril 17, 202610 min read5 views
The MyForexFunds CFTC Shutdown of 2023: What Really Happened
On August 28, 2023, the U.S. Commodity Futures Trading Commission filed a complaint against Traders Global Group Inc. – the company operating as MyForexFunds – and its CEO, Murtuza Kazmi. The following day, U.S. District Court Judge Robert B. Kugler signed a statutory restraining order that:
Simultaneously, the Ontario Securities Commission (OSC) launched parallel enforcement proceedings in Canada. The result: a prop trading firm serving traders in over 80 countries was shut down overnight, with no prior notice or discussion.
The CFTC's core allegations included the following:
The regulator alleged that the firm generated at least $310 million in fees primarily from challenge fees, not from successful market trading.
For traders, the impact was immediate and brutal. Funded accounts were locked. Pending payouts went unpaid. The website went dark. And the company — constrained by legal proceedings — couldn't say a word publicly.
- Froze all assets of the defendants
- Placed the company into receivership
- Suspended all business operations immediately
Simultaneously, the Ontario Securities Commission (OSC) launched parallel enforcement proceedings in Canada. The result: a prop trading firm serving traders in over 80 countries was shut down overnight, with no prior notice or discussion.
The CFTC's core allegations included the following:
- Misrepresenting that traders were trading live accounts against independent third-party liquidity providers (when they were actually trading simulated accounts with MFF as counterparty)
- Using artificial trade delays and manipulated price slippage to reduce trader profitability
- Charging hidden commissions that disadvantaged traders
- Unjustifiably terminating profitable accounts
The regulator alleged that the firm generated at least $310 million in fees primarily from challenge fees, not from successful market trading.
For traders, the impact was immediate and brutal. Funded accounts were locked. Pending payouts went unpaid. The website went dark. And the company — constrained by legal proceedings — couldn't say a word publicly.
Want to understand how retail prop firms actually work before diving deeper? Read our guide: What Is a Prop Firm? The Complete Guide to Proprietary Trading (2026 Edition)
The CFTC Misconduct: What the Court Actually Found
Here's where the story takes a dramatic turn — one most coverage gets wrong or ignores.
During the legal proceedings, it emerged that the CFTC had mischaracterised a legitimate tax payment to obtain the asset freeze. The Ontario Securities Commission had confirmed to the CFTC on August 17, 2023 — before the lawsuit was filed — that a CAD $31.5 million transfer was corporate tax owed to the Canada Revenue Agency. Despite this, the CFTC presented this payment to the court as evidence of asset dissipation.
This wasn't a small procedural error. A Special Master appointed by the court, Judge Jose L. Linares, investigated and found that the CFTC had taken "deliberate steps down a path of obfuscation and avoidance" with "full knowledge of the error in a sworn declaration submitted to the Court." The Special Master described the CFTC's conduct as "willful" and "bad faith."
The CFTC's own lead attorney on the case later admitted in court to being "careless and sloppy" during the investigation. In May 2025, the agency placed four attorneys and one investigator involved in the case on administrative leave, citing potential violations of professional and government ethics.
Even CFTC Acting Chair Caroline Pham — then a Commissioner — publicly stated: "This is a grave matter, and we, the Commission, will be subject to intense scrutiny over how we handle the alleged CFTC misconduct."
The Special Master recommended the case be dismissed with prejudice and that the CFTC face sanctions. That recommendation was accepted.
During the legal proceedings, it emerged that the CFTC had mischaracterised a legitimate tax payment to obtain the asset freeze. The Ontario Securities Commission had confirmed to the CFTC on August 17, 2023 — before the lawsuit was filed — that a CAD $31.5 million transfer was corporate tax owed to the Canada Revenue Agency. Despite this, the CFTC presented this payment to the court as evidence of asset dissipation.
This wasn't a small procedural error. A Special Master appointed by the court, Judge Jose L. Linares, investigated and found that the CFTC had taken "deliberate steps down a path of obfuscation and avoidance" with "full knowledge of the error in a sworn declaration submitted to the Court." The Special Master described the CFTC's conduct as "willful" and "bad faith."
The CFTC's own lead attorney on the case later admitted in court to being "careless and sloppy" during the investigation. In May 2025, the agency placed four attorneys and one investigator involved in the case on administrative leave, citing potential violations of professional and government ethics.
Even CFTC Acting Chair Caroline Pham — then a Commissioner — publicly stated: "This is a grave matter, and we, the Commission, will be subject to intense scrutiny over how we handle the alleged CFTC misconduct."
The Special Master recommended the case be dismissed with prejudice and that the CFTC face sanctions. That recommendation was accepted.
The Legal Victory: CFTC Case Dismissed
On May 13, 2025, U.S. District Judge Edward S. Kiel officially dismissed all allegations against MyForexFunds and Murtuza Kazmi with prejudice. The court also ordered the CFTC to pay the defendants' legal costs — totaling approximately $3.1 million in sanctions.
MyForexFunds' legal team — Quinn Emanuel and King & Spalding — stated publicly: "The CFTC falsely accused our clients of fraud, shut down their businesses, and froze all of their money on the basis of a false, secret submission to the court."
For context, a dismissal "with prejudice" means the CFTC cannot refile or bring the same claims again. This wasn't a settlement. This wasn't a technicality. The court found the regulator's own conduct to be sanctionable.
MyForexFunds' legal team — Quinn Emanuel and King & Spalding — stated publicly: "The CFTC falsely accused our clients of fraud, shut down their businesses, and froze all of their money on the basis of a false, secret submission to the court."
For context, a dismissal "with prejudice" means the CFTC cannot refile or bring the same claims again. This wasn't a settlement. This wasn't a technicality. The court found the regulator's own conduct to be sanctionable.
The OSC Ruling: Canada Follows Suit
The victory wasn't limited to the U.S. In Canada, the legal tide turned just as decisively.
On February 25, 2026, Justice Kimmel of the Ontario Superior Court ordered the OSC to pay C$80,000 (approximately US$58,500) in legal costs to MyForexFunds. This was reported as the highest such costs award ever imposed against the Ontario Securities Commission — more than five times the previous record.
Justice Kimmel stated directly: "The court has not been overly impressed with the manner in which the Commission has been carrying out its public interest mandate in this case."
Bloomberg, The Globe and Mail, and multiple financial publications covered the ruling as historic.
MyForexFunds Coming Back: The 2026 Roadmap
With legal battles won and assets returned, MyForexFunds is now executing a structured comeback. After more than two years of near-total silence — forced by legal constraints — the firm broke its silence in October 2025 with a post on X (formerly Twitter).
"It's been a long time. A lot has happened. We will tell our story soon. Be patient; we missed you."
Since then, MFF has published a transparent six-phase roadmap. Here's where things stand as of April 2026:
"It's been a long time. A lot has happened. We will tell our story soon. Be patient; we missed you."
Since then, MFF has published a transparent six-phase roadmap. Here's where things stand as of April 2026:
| Phase | Milestone | Status |
|---|---|---|
| Phase 1 | US Case Victory — CFTC case dismissed, sanctions granted | Complete |
| Phase 2 | Unwinding Canadian Receivership — significantly scaled back | Complete |
| Phase 3 | Return of Canadian Assets — Final Court Order (Dec 2025) | Complete |
| Phase 4 | Access to Systems & Data — actively in progress | In Progress |
| Phase 6 | Analyze Data — account review underway | In Progress |
| Phase 6 | Open Support Channels — payout emails now being sent | In Progress (April 2026) |
The latest update (April 2026): MyForexFunds has confirmed that emails are now being sent to traders who had pending payout requests at the time of the 2023 shutdown. CEO Murtuza Kazmi has stated: "We are moving as fast as the process allows to rebuild the infrastructure and onboard the payment partners needed to handle these payments securely. We are working diligently to restore a commitment that was unfairly interrupted."
For traders who don't receive an email, MFF has said it will publish a survey to capture any accounts that may have been missed during the initial outreach.
What This Means for Traders: The Honest Take
Let's be direct. The MyForexFunds shutdown CFTC 2023 episode is one of the most significant events in the history of retail prop trading. Here's what you should take away from it.
For traders who were funded in 2023: You have not been forgotten. Payouts are being processed. Stay updated on official channels only — @MyForexFunds on X and myforexfunds.com. CEO Kazmi has specifically warned against misinformation from influencer accounts.
For traders evaluating prop firms today: This case reveals the systemic risks that exist in any unregulated retail prop firm model. The issue wasn't necessarily that MFF was a scam — the court dismissed those claims. The issue is that the regulatory environment around retail prop firms remains murky, and sudden shutdowns can happen even to large, popular platforms. This is why due diligence matters.
For the industry as a whole: The MFF case set a precedent. Regulators (particularly the CFTC) face real consequences for overreach and procedural misconduct. That said, regulatory scrutiny of retail prop firms continues to intensify. Firms that operate transparently, disclose their simulated capital model clearly, and maintain clean compliance records will be best positioned.
For traders who were funded in 2023: You have not been forgotten. Payouts are being processed. Stay updated on official channels only — @MyForexFunds on X and myforexfunds.com. CEO Kazmi has specifically warned against misinformation from influencer accounts.
For traders evaluating prop firms today: This case reveals the systemic risks that exist in any unregulated retail prop firm model. The issue wasn't necessarily that MFF was a scam — the court dismissed those claims. The issue is that the regulatory environment around retail prop firms remains murky, and sudden shutdowns can happen even to large, popular platforms. This is why due diligence matters.
For the industry as a whole: The MFF case set a precedent. Regulators (particularly the CFTC) face real consequences for overreach and procedural misconduct. That said, regulatory scrutiny of retail prop firms continues to intensify. Firms that operate transparently, disclose their simulated capital model clearly, and maintain clean compliance records will be best positioned.
Is MyForexFunds Legitimate? The Current Status (2026)
This is the question most traders are searching for. Here's the direct answer:
As of April 2026, MyForexFunds:
- Has won its legal battle against the CFTC (case dismissed with prejudice)
- Has won a historic cost award against the OSC in Canada
- Has regained control of its Canadian assets following a December 2025 court order
- Is actively processing outstanding trader payouts from 2023
- Has NOT yet relaunched as an active prop trading platform accepting new challenges
- Is conducting a full operational, financial, and technical systems review before reopening
The firm has not announced a specific relaunch date for new traders. Anyone claiming to know an exact date should be treated with skepticism — MFF themselves have been careful not to commit to a specific timeline beyond their phased roadmap.
What Traders Should Do Right Now
If you were a trader with MyForexFunds in 2023, here's a practical action list:
- Check your email — MFF is sending emails in batches to traders with outstanding payout requests. Check both inbox and spam folders for messages from official MFF addresses.
- Watch the official channels only — Follow @MyForexFunds on X and monitor myforexfunds.com. Ignore third-party "insider updates" from influencers.
- Fill out the survey if needed — MFF has said it will post a survey for traders who don't receive an email, to ensure no one is missed.
- Document your account details — Keep records of your funded account, challenge fee receipts, and any payout confirmations from 2023. This will be needed for verification.
- Don't pay anyone to "recover" your funds — Scammers target traders in exactly these situations. MFF will not ask you to pay fees to receive payouts.
The Bigger Picture: What This Means for Retail Prop Trading
The MyForexFunds saga has reshaped the retail prop trading industry in ways that are still unfolding. Here's what changed:
Regulatory scrutiny intensified. The CFTC's aggressive (and ultimately flawed) action against MFF signalled that regulators were paying attention to the prop firm space. Other firms have since increased their compliance investment and disclosure practices.
The simulated capital model is under a microscope. One of the CFTC's core concerns — that traders didn't fully understand they were trading simulated accounts, not real market positions — is a legitimate one. The best retail prop firms today are far more explicit about this distinction than they were in 2021–2023.
Regulatory overreach has consequences. The $3.1 million sanction against the CFTC and the record C$80,000 cost award against the OSC send a clear message: regulators who act in bad faith face accountability too.
Community loyalty matters. Despite two-plus years of silence, MyForexFunds maintained a loyal following that followed its legal battle closely. That community trust will be a critical asset if and when the firm fully relaunches.
Regulatory scrutiny intensified. The CFTC's aggressive (and ultimately flawed) action against MFF signalled that regulators were paying attention to the prop firm space. Other firms have since increased their compliance investment and disclosure practices.
The simulated capital model is under a microscope. One of the CFTC's core concerns — that traders didn't fully understand they were trading simulated accounts, not real market positions — is a legitimate one. The best retail prop firms today are far more explicit about this distinction than they were in 2021–2023.
Regulatory overreach has consequences. The $3.1 million sanction against the CFTC and the record C$80,000 cost award against the OSC send a clear message: regulators who act in bad faith face accountability too.
Community loyalty matters. Despite two-plus years of silence, MyForexFunds maintained a loyal following that followed its legal battle closely. That community trust will be a critical asset if and when the firm fully relaunches.
Final Thought: Don't Just Follow the Narrative — Follow the Facts
The MyForexFunds story has been told in many ways: as a cautionary tale about prop firm risk, as a regulatory horror story, and now as a comeback narrative. The truth, as always, is more complex.
What's undeniable: the CFTC's case was dismissed, the regulator was sanctioned, and the firm is working to make traders whole. Whether or not MFF ultimately relaunches as a platform, the legal outcome speaks for itself.
For traders watching this space, the lesson is simple — read primary sources; follow official channels; and don't let anyone — regulator, firm, or influencer — tell you what to think before you've read the facts.
We'll keep updating this page as new developments emerge.
What's undeniable: the CFTC's case was dismissed, the regulator was sanctioned, and the firm is working to make traders whole. Whether or not MFF ultimately relaunches as a platform, the legal outcome speaks for itself.
For traders watching this space, the lesson is simple — read primary sources; follow official channels; and don't let anyone — regulator, firm, or influencer — tell you what to think before you've read the facts.
We'll keep updating this page as new developments emerge.
#MyForexFunds shutdown CFTC 2023#myforexfunds coming back 2026#myforexfunds status 2026
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Written by
Abhay Prakash
Founder & Lead Analyst
Founder of TradeClaris and an active forex & futures trader with 5+ years of screen time. Abhay blends quantitative analysis with trading psychology to help retail traders build consistency. When he's not charting, he's building tools that make journaling and performance tracking effortless.
Forex TradingTrading PsychologyQuantitative AnalysisRisk Management