“I cannot even begin to put my family’s struggles during this time into words. When the CFTC did what it did, the effect was devastating. I went for seven months without a single penny to my name.”
For the first time since My Forex Funds was abruptly shut down in August 2023, its founder and CEO, Murtuza Kazmi, is speaking publicly about the chain of events that followed – an enforcement action that erased one of the prop trading industry’s largest firms overnight and triggered a legal battle. That fight ended with the case dismissed with prejudice, after a US Court found that key facts had been misrepresented by the CFTC in bad faith in order to obtain an asset freeze.
In the interview, Kazmi walks through how the investigation began without warning, how corporate and personal accounts were frozen within hours, and how the fallout rippled through employees and traders awaiting payouts. He also outlines what comes next: with assets and systems now gradually being restored, My Forex Funds is signalling a potential return to the market, even as key questions remain unresolved.
“We Were Blindsided”
According to Kazmi, it all started as one big shock: “We were blindsided by the CFTC’s discreet investigation”.
The CFTC initially charged My Forex Funds and Kazmi with fraud. According to the regulator, MFF acted as a counterparty in settling traders against its customers and terminated customers’ accounts under false pretences. The platform was also accused of using manipulative software to execute customers’ orders at the worst possible prices.
The regulator at the time said that the company generated at least $310 million in fees through its prop trading business. However, Kazmi now highlights that “it was a bit more than what the CFTC alleged.” He further revealed that MFF had close to half a million users since its inception and paid out over $290 million to traders by 2023.
Important Notice 📢
Yesterday we learned that, without prior notice or discussion, a provincial securities regulator in Canada and the commodities regulator in the United States issued orders preventing us from trading securities or accessing funds in our bank accounts.
Until… pic.twitter.com/dKpxmx5axT
— MyForexFunds (@MyForexFunds) September 1, 2023
“Nightmare for Our Staff”
Along with the accusations, the regulatory agency obtained a temporary restraining order and asset freeze against My Forex Funds and Kazmi, which shuttered the prop trading services overnight. The asset freeze not only impacted the firm’s assets, but it also barred Kazmi from accessing his own money.
Recalling the struggles, he said: “I had to beg and borrow funds from family and friends. From getting gas for the car to buying groceries to paying for medication, all had to be done on borrowed funds.”
“The hardest moments were the ones involving my children. Explaining to my seven-year-old son why we couldn’t hold a birthday party because our resources were unjustly taken was a low point I wouldn’t wish on anyone.
“My family, my MFF family, community, and I always knew and believed that we didn’t do anything wrong. This is one of the main ways we coped with this situation.”
When asked about his breaking points, he said that “there were a lot of tears.”
“When we had to let go of our amazing global workforce, everyone had their own struggles, and when they lost their income, it hurt in a way that I cannot put into words. Some newly married couples, some buying homes, others who were caring for their elderly parents, all were stripped of their future. Their messages, their cries still resonate in my mind.”
He also emphasised that the MFF staff “were aware that MFF was being wrongfully accused and knew that we would eventually overcome the stressful times,” adding: “However, losing a job without much explanation and due to no fault of their own must have been a nightmare for our staff.”
“They Chose Speed Over Accuracy”
It later came to light that CFTC representatives had “deliberately” mischaracterised the company’s tax payment as a personal payment to Kazmi to obtain the freeze order. After a legal challenge by the defence, the court lifted most of the asset freeze on Kazmi’s holdings.
“They chose to prioritise speed over accuracy, as they did not take the time to understand either the business or the industry in which we operated,” Kazmi claims.
“The agency’s failure to interview our team or investigate the industry led to the false portrayal of legitimate tax payments as ‘missing’ funds. They spoke to only one of our vendor analysts, who wasn’t aware of the full scope of the business. No team members were interviewed, no customer complaints were filed, and there was no missing money, as the CFTC initially portrayed to get a freeze order from the district court.”
“This lack of due diligence, combined with what the court found to be a willful disregard for the truth, resulted in a significant miscarriage of justice.”
In August 2023, MyForexFunds was wrongfully shut down. The CFTC’s case in USA has been dismissed and the unwinding process of Receivership in Canada is still ongoing. Thank you to our community for your support and strength during this time.
Please see an update from our CEO… pic.twitter.com/p4Dyi3cHVL
— MyForexFunds (@MyForexFunds) October 9, 2025
The Commissioner Drama
Later, the lapses in CFTC’s investigations also came to light in open court through statements and filings. The lead investigator in the case even gave false testimony in court to hide the procedural lapses.
The defence lawyers sought a sanctions order against the agency.
“I found out that the CFTC had possibly made a mistake within the first 2-3 days,” Kazmi said. “We all make mistakes, and I thought they did as well.”
“However, as we went back and forth, it became clear that prior to filing their application, the CFTC had received an email from the Ontario Securities Commission (OSC) confirming that these transfers were tax payments made to the Canada Revenue Agency.”
Caroline Pham, Source: LinkedIn
“I cannot comment on why the investigator made false testimony. What I understand is that the US District Court judge explained that the action was intended to secure a tactical advantage by freezing the company’s assets and restricting my financial resources, while still expecting me to fight on equal terms.”
The agency faced another massive setback when, in the middle of the court battle, one of its then-Commissioners, Caroline Pham, officially criticised its enforcement division, saying: “This type of behaviour cannot be tolerated at a law enforcement agency.”
Read more: CFTC Commissioner Drama and My Forex Funds Case – “Government Lawyers Can’t Afford to Slip”
Following her intervention, a US Senator took up the issue, without naming MFF, and sent a set of questionnaires to the CFTC Chair, asking him to clarify the agency’s “processes and procedures.”
A Bloomberg report later claimed that multiple attorneys involved with the MFF case, along with investigators, were put on “administrative leave”.
Notably, the CFTC’s lead attorney for the MFF case admitted in court that the investigations were “careless and sloppy”.
The CFTC’s press release mentioning putting staff on “administrative leave”
“I would say that the agency’s enforcement division had its own issues, not the CFTC,” the MFF founder continued. “The agency’s leadership, i.e., the commissioners, were not even aware of what was going on till we had filed an official sanctions motion.”
He also believes that “administrative leave seems like an insufficient response to the scale of the damage caused,” adding that “there must be a fundamental systemic change to prevent those in powerful positions from misusing their authority to destroy livelihoods and businesses based on false pretences.”
When asked if he or any of the MFF representatives spoke to Pham, he said: “We neither approached her nor were we ever able to speak with her directly.”
Although the court dismissed the CFTC’s case against MFF and Kazmi, it was not necessarily because the regulator could not prove the original allegations. Rather, it was because of deliberate procedural misconduct.
Kazmi, however, believes that if the case were to continue, MFF “would have won the case regardless.”
“We were fully prepared to demonstrate that our business was lawful, transparent, and consistent with industry standards and practices,” he continued. “At the end of the day, whether due to improper handling, which essentially amounted to misleading the court, or on merit itself, I am confident the outcome would have been the same: MFF’s victory.”
Interestingly, the CFTC and MFF were also discussing a settlement, but they were “unable to reach terms”, according to Kazmi.
A screenshot of My Forex Funds’ current website
“Today, Anyone with Instagram can Start a Prop Firm”
At its peak, MFF was one of the largest prop trading venues. Since its collapse the industry has undergone significant changes.
“The industry certainly changed, but I am not sure whether it was for the better or for the worse,” Kazmi stressed. “I have continued to observe the prop trading industry closely. It pains me to say that the industry has not moved in a positive direction.”
“During the ‘MFF era,’ most prop firms were run by experienced professionals with strong technical and trading backgrounds. Today, it seems that anyone with an Instagram account and a small amount of capital can start a prop firm. This shift has negatively affected the industry and, more importantly, the end users. The rise in payout denials, along with unnecessary and unclear rules designed to deny payouts, clearly reflects the downward spiral the prop industry is currently experiencing.”
“Recovering Everything That Rightfully Belongs to Us”
Now, MFF is also teasing a comeback to the industry. Although it did not confirm a relaunch, it is now in the process of getting back its assets and data.
Related: My Forex Funds Clone Targets Traders While the Prop Trading Firm Battles CFTC at Court
Kazmi also highlighted that the present state of the prop trading industry “presents an opportunity for us and for true industry leaders to make things right again.”
“I believe we can bring the industry back to its prior glory by launching some ideas that will require participation from both the market at large and from three or four of our biggest competitors.”
Dear MFF Family and Prop Community,
Our roadmap is more than just a plan; it’s a journey we’re taking together with our community. We’re opening the doors to transparency – keeping you informed of each step, challenge, and achievement along the way. From early victories to… pic.twitter.com/hNGC9yTFwv
— MyForexFunds (@MyForexFunds) November 6, 2025
He further stressed that relaunching MFF presents challenges, as the company, which has recently regained access to its assets, must rebuild a team to conduct proper analysis.
“Then, we need to recover data from various vendors, some of whom may not be cooperative,” Kazmi added. “Once the data and teams are in place, we can begin analysing and determining what the future holds for MFF. For now, my utmost priority is recovering everything that rightfully belonged to us.”
However, it remains unclear what happened to the MFF traders who were entitled to a payout at the time of the shutdown.
Kazmi did not give a straight answer to the fate of those traders, but said: “We are just starting to gain access back to these systems and the data inside them, with court-ordered restoration in progress, along with putting together a team to conduct analysis. Once the analysis is complete, I will be in a better position to provide more information and answer this.”
Another talking point in the prop industry is the prospect of new regulations. The industry today remains unregulated, but regulators are already taking an interest in the sector. FinanceMagnats.com earlier reported that the pan-European regulator ran an initial check and also discussed possible regulations.
“Regulation will likely evolve as the industry continues to grow and becomes more mainstream,” Kazmi believes. “As for how that regulation should take shape, we have ideas and are open to discussions with all relevant regulatory bodies, as appropriate.”
Arnab Shome contributed to this article.
“I cannot even begin to put my family’s struggles during this time into words. When the CFTC did what it did, the effect was devastating. I went for seven months without a single penny to my name.”
For the first time since My Forex Funds was abruptly shut down in August 2023, its founder and CEO, Murtuza Kazmi, is speaking publicly about the chain of events that followed – an enforcement action that erased one of the prop trading industry’s largest firms overnight and triggered a legal battle. That fight ended with the case dismissed with prejudice, after a US Court found that key facts had been misrepresented by the CFTC in bad faith in order to obtain an asset freeze.
In the interview, Kazmi walks through how the investigation began without warning, how corporate and personal accounts were frozen within hours, and how the fallout rippled through employees and traders awaiting payouts. He also outlines what comes next: with assets and systems now gradually being restored, My Forex Funds is signalling a potential return to the market, even as key questions remain unresolved.
“We Were Blindsided”
According to Kazmi, it all started as one big shock: “We were blindsided by the CFTC’s discreet investigation”.
The CFTC initially charged My Forex Funds and Kazmi with fraud. According to the regulator, MFF acted as a counterparty in settling traders against its customers and terminated customers’ accounts under false pretences. The platform was also accused of using manipulative software to execute customers’ orders at the worst possible prices.
The regulator at the time said that the company generated at least $310 million in fees through its prop trading business. However, Kazmi now highlights that “it was a bit more than what the CFTC alleged.” He further revealed that MFF had close to half a million users since its inception and paid out over $290 million to traders by 2023.
Important Notice 📢
Yesterday we learned that, without prior notice or discussion, a provincial securities regulator in Canada and the commodities regulator in the United States issued orders preventing us from trading securities or accessing funds in our bank accounts.
Until… pic.twitter.com/dKpxmx5axT
— MyForexFunds (@MyForexFunds) September 1, 2023
“Nightmare for Our Staff”
Along with the accusations, the regulatory agency obtained a temporary restraining order and asset freeze against My Forex Funds and Kazmi, which shuttered the prop trading services overnight. The asset freeze not only impacted the firm’s assets, but it also barred Kazmi from accessing his own money.
Recalling the struggles, he said: “I had to beg and borrow funds from family and friends. From getting gas for the car to buying groceries to paying for medication, all had to be done on borrowed funds.”
“The hardest moments were the ones involving my children. Explaining to my seven-year-old son why we couldn’t hold a birthday party because our resources were unjustly taken was a low point I wouldn’t wish on anyone.
“My family, my MFF family, community, and I always knew and believed that we didn’t do anything wrong. This is one of the main ways we coped with this situation.”
When asked about his breaking points, he said that “there were a lot of tears.”
“When we had to let go of our amazing global workforce, everyone had their own struggles, and when they lost their income, it hurt in a way that I cannot put into words. Some newly married couples, some buying homes, others who were caring for their elderly parents, all were stripped of their future. Their messages, their cries still resonate in my mind.”
He also emphasised that the MFF staff “were aware that MFF was being wrongfully accused and knew that we would eventually overcome the stressful times,” adding: “However, losing a job without much explanation and due to no fault of their own must have been a nightmare for our staff.”
“They Chose Speed Over Accuracy”
It later came to light that CFTC representatives had “deliberately” mischaracterised the company’s tax payment as a personal payment to Kazmi to obtain the freeze order. After a legal challenge by the defence, the court lifted most of the asset freeze on Kazmi’s holdings.
“They chose to prioritise speed over accuracy, as they did not take the time to understand either the business or the industry in which we operated,” Kazmi claims.
“The agency’s failure to interview our team or investigate the industry led to the false portrayal of legitimate tax payments as ‘missing’ funds. They spoke to only one of our vendor analysts, who wasn’t aware of the full scope of the business. No team members were interviewed, no customer complaints were filed, and there was no missing money, as the CFTC initially portrayed to get a freeze order from the district court.”
“This lack of due diligence, combined with what the court found to be a willful disregard for the truth, resulted in a significant miscarriage of justice.”
In August 2023, MyForexFunds was wrongfully shut down. The CFTC’s case in USA has been dismissed and the unwinding process of Receivership in Canada is still ongoing. Thank you to our community for your support and strength during this time.
Please see an update from our CEO… pic.twitter.com/p4Dyi3cHVL
— MyForexFunds (@MyForexFunds) October 9, 2025
The Commissioner Drama
Later, the lapses in CFTC’s investigations also came to light in open court through statements and filings. The lead investigator in the case even gave false testimony in court to hide the procedural lapses.
The defence lawyers sought a sanctions order against the agency.
“I found out that the CFTC had possibly made a mistake within the first 2-3 days,” Kazmi said. “We all make mistakes, and I thought they did as well.”
“However, as we went back and forth, it became clear that prior to filing their application, the CFTC had received an email from the Ontario Securities Commission (OSC) confirming that these transfers were tax payments made to the Canada Revenue Agency.”
Caroline Pham, Source: LinkedIn
“I cannot comment on why the investigator made false testimony. What I understand is that the US District Court judge explained that the action was intended to secure a tactical advantage by freezing the company’s assets and restricting my financial resources, while still expecting me to fight on equal terms.”
The agency faced another massive setback when, in the middle of the court battle, one of its then-Commissioners, Caroline Pham, officially criticised its enforcement division, saying: “This type of behaviour cannot be tolerated at a law enforcement agency.”
Read more: CFTC Commissioner Drama and My Forex Funds Case – “Government Lawyers Can’t Afford to Slip”
Following her intervention, a US Senator took up the issue, without naming MFF, and sent a set of questionnaires to the CFTC Chair, asking him to clarify the agency’s “processes and procedures.”
A Bloomberg report later claimed that multiple attorneys involved with the MFF case, along with investigators, were put on “administrative leave”.
Notably, the CFTC’s lead attorney for the MFF case admitted in court that the investigations were “careless and sloppy”.
The CFTC’s press release mentioning putting staff on “administrative leave”
“I would say that the agency’s enforcement division had its own issues, not the CFTC,” the MFF founder continued. “The agency’s leadership, i.e., the commissioners, were not even aware of what was going on till we had filed an official sanctions motion.”
He also believes that “administrative leave seems like an insufficient response to the scale of the damage caused,” adding that “there must be a fundamental systemic change to prevent those in powerful positions from misusing their authority to destroy livelihoods and businesses based on false pretences.”
When asked if he or any of the MFF representatives spoke to Pham, he said: “We neither approached her nor were we ever able to speak with her directly.”
Although the court dismissed the CFTC’s case against MFF and Kazmi, it was not necessarily because the regulator could not prove the original allegations. Rather, it was because of deliberate procedural misconduct.
Kazmi, however, believes that if the case were to continue, MFF “would have won the case regardless.”
“We were fully prepared to demonstrate that our business was lawful, transparent, and consistent with industry standards and practices,” he continued. “At the end of the day, whether due to improper handling, which essentially amounted to misleading the court, or on merit itself, I am confident the outcome would have been the same: MFF’s victory.”
Interestingly, the CFTC and MFF were also discussing a settlement, but they were “unable to reach terms”, according to Kazmi.
A screenshot of My Forex Funds’ current website
“Today, Anyone with Instagram can Start a Prop Firm”
At its peak, MFF was one of the largest prop trading venues. Since its collapse the industry has undergone significant changes.
“The industry certainly changed, but I am not sure whether it was for the better or for the worse,” Kazmi stressed. “I have continued to observe the prop trading industry closely. It pains me to say that the industry has not moved in a positive direction.”
“During the ‘MFF era,’ most prop firms were run by experienced professionals with strong technical and trading backgrounds. Today, it seems that anyone with an Instagram account and a small amount of capital can start a prop firm. This shift has negatively affected the industry and, more importantly, the end users. The rise in payout denials, along with unnecessary and unclear rules designed to deny payouts, clearly reflects the downward spiral the prop industry is currently experiencing.”
“Recovering Everything That Rightfully Belongs to Us”
Now, MFF is also teasing a comeback to the industry. Although it did not confirm a relaunch, it is now in the process of getting back its assets and data.
Related: My Forex Funds Clone Targets Traders While the Prop Trading Firm Battles CFTC at Court
Kazmi also highlighted that the present state of the prop trading industry “presents an opportunity for us and for true industry leaders to make things right again.”
“I believe we can bring the industry back to its prior glory by launching some ideas that will require participation from both the market at large and from three or four of our biggest competitors.”
Dear MFF Family and Prop Community,
Our roadmap is more than just a plan; it’s a journey we’re taking together with our community. We’re opening the doors to transparency – keeping you informed of each step, challenge, and achievement along the way. From early victories to… pic.twitter.com/hNGC9yTFwv
— MyForexFunds (@MyForexFunds) November 6, 2025
He further stressed that relaunching MFF presents challenges, as the company, which has recently regained access to its assets, must rebuild a team to conduct proper analysis.
“Then, we need to recover data from various vendors, some of whom may not be cooperative,” Kazmi added. “Once the data and teams are in place, we can begin analysing and determining what the future holds for MFF. For now, my utmost priority is recovering everything that rightfully belonged to us.”
However, it remains unclear what happened to the MFF traders who were entitled to a payout at the time of the shutdown.
Kazmi did not give a straight answer to the fate of those traders, but said: “We are just starting to gain access back to these systems and the data inside them, with court-ordered restoration in progress, along with putting together a team to conduct analysis. Once the analysis is complete, I will be in a better position to provide more information and answer this.”
Another talking point in the prop industry is the prospect of new regulations. The industry today remains unregulated, but regulators are already taking an interest in the sector. FinanceMagnats.com earlier reported that the pan-European regulator ran an initial check and also discussed possible regulations.
“Regulation will likely evolve as the industry continues to grow and becomes more mainstream,” Kazmi believes. “As for how that regulation should take shape, we have ideas and are open to discussions with all relevant regulatory bodies, as appropriate.”
Arnab Shome contributed to this article.
