My Forex Funds Case Takes a New Turn: CFTC Sends Involved Staff on “Administrative Leave”
By: finance magnates|2025/05/07 14:45:01
0
Share
The US Commodity Futures Trading Commission (CFTC) has placed four lawyers and one investigator on administrative leave due to allegations of misconduct in the fraud case against Traders Global Group Inc., a proprietary trading firm known as My Forex Funds, Bloomberg reported, citing “people familiar with the matter”. “Administrative Leave for Potential Violation” The regulator also announced that it “has placed staff on administrative leave for potential violations of laws, government ethics requirements and professional rules of conduct,” adding that “investigations are currently ongoing.” However, it did not confirm the number of staff involved or mention My Forex Funds by name. The agency further told Bloomberg that “a report and recommendation has been filed on the Special Master’s review of allegations that CFTC enforcement attorneys and management engaged in numerous instances of wilful and bad faith misconduct, including making false statements to the court.” The administrative actions come as Caroline Pham leads the agency as Acting Chair . She took over after US President Donald Trump assumed office for the second time, but Brian Quintenz is set to replace her. More on My Forex Funds: Prop Firm My Forex Funds and the CFTC Are Probably Negotiating a Settlement Fall of a Prop Trading Giant The CFTC initially charged My Forex Funds and its CEO, Murtuza Kazmi, with fraud at the end of August 2023. According to the regulator, the company generated at least $310 million in fees from its proprietary trading business. The platform had more than 135,000 customers between November 2021 and its forced shutdown. However, the regulatory action—including a temporary restraining order and asset freeze—effectively shut down the business overnight. Following a legal challenge by the defendants’ lawyers, a court unfroze most of Kazmi's assets. Interestingly, Pham opposed the agency’s handling of the My Forex Funds case last year and raised concerns over the allegations used to secure the sanctions order , which was proven to be a mischaracterisation of tax payments. She also voiced broader concerns about the CFTC’s internal processes, particularly the actions of the Division of Enforcement. My Forex Funds even filed a sanctions motion against the CFTC for alleged misrepresentation of facts. According to court filings, the regulator’s lead attorney admitted during an evidentiary hearing that he was “careless and sloppy” during the investigation . The CFTC, however, argued that the evidence presented by the defendants showed the agency’s “mistakes were limited and inadvertent.” The US Commodity Futures Trading Commission (CFTC) has placed four lawyers and one investigator on administrative leave due to allegations of misconduct in the fraud case against Traders Global Group Inc., a proprietary trading firm known as My Forex Funds, Bloomberg reported, citing “people familiar with the matter”. “Administrative Leave for Potential Violation” The regulator also announced that it “has placed staff on administrative leave for potential violations of laws, government ethics requirements and professional rules of conduct,” adding that “investigations are currently ongoing.” However, it did not confirm the number of staff involved or mention My Forex Funds by name. The agency further told Bloomberg that “a report and recommendation has been filed on the Special Master’s review of allegations that CFTC enforcement attorneys and management engaged in numerous instances of wilful and bad faith misconduct, including making false statements to the court.” The administrative actions come as Caroline Pham leads the agency as Acting Chair . She took over after US President Donald Trump assumed office for the second time, but Brian Quintenz is set to replace her. More on My Forex Funds: Prop Firm My Forex Funds and the CFTC Are Probably Negotiating a Settlement Fall of a Prop Trading Giant The CFTC initially charged My Forex Funds and its CEO, Murtuza Kazmi, with fraud at the end of August 2023. According to the regulator, the company generated at least $310 million in fees from its proprietary trading business. The platform had more than 135,000 customers between November 2021 and its forced shutdown. However, the regulatory action—including a temporary restraining order and asset freeze—effectively shut down the business overnight. Following a legal challenge by the defendants’ lawyers, a court unfroze most of Kazmi's assets. Interestingly, Pham opposed the agency’s handling of the My Forex Funds case last year and raised concerns over the allegations used to secure the sanctions order , which was proven to be a mischaracterisation of tax payments. She also voiced broader concerns about the CFTC’s internal processes, particularly the actions of the Division of Enforcement. My Forex Funds even filed a sanctions motion against the CFTC for alleged misrepresentation of facts. According to court filings, the regulator’s lead attorney admitted during an evidentiary hearing that he was “careless and sloppy” during the investigation . The CFTC, however, argued that the evidence presented by the defendants showed the agency’s “mistakes were limited and inadvertent.”
You may also like

AI Agent needs Crypto, not Crypto needs AI
It is not Crypto that needs AI to survive, but rather AI Agents that need Crypto to be implemented: when AI truly shifts from "thinking" to "executing," it must seek the boundaries of authority and funding within the programmable primitives of Crypto.

Stablecoins are breaking away from cryptocurrency, becoming the next generation of infrastructure for global payments
The use of stablecoins is shifting from facilitating low-cost cross-border remittances to supporting general commercial activities and inter-company vendor payments.

Web3 teams should stop wasting marketing budgets on the X platform
The announcements from the project party are still very important, but they should no longer be the starting point of promotional activities; instead, they should be the endpoint.

Strive buys Strategy stocks, and Bitcoin treasury companies start nesting each other
When everyone's bets are placed on the same table, the difference between "structured financing" and "concentrated gambling" may just be a few more arrows drawn on the PPT.

Strive to buy Strategy stock, Bitcoin Treasury company starts nesting dolls with each other
Bitcoin hodlers are starting to nested be in each other.

Key Market Intel on March 12th, how much did you miss out on?
1. On-chain Funds: $29.7M inflow to Hyperliquid today; $30.9M outflow from Base
2. Biggest Gainers/Losers: $DRV, $LYN
3. Top News: US plans to release 172M barrels of oil to curb prices, on-chain pre-market crude oil gains narrow by 4%

The new center of Crypto
But the market is constantly evolving. By 2026, companies that can adapt to the new environment will survive, while those that continue to rely on the old script may face the fate of elimination.

Former Coinbase CPO's lengthy article: I have regrets, but I still firmly believe in Crypto
People often fantasize that wealth comes from catching every new wave. Sometimes this is true. But more often, wealth comes from riding a real wave and not blindly paddling away every time the water splashes around.

Hormuz Strait Triggers Oil War, Will the Fed Blink with a Rate Cut in June?
Polymarket data shows that the current market is betting a 64% probability of an interest rate cut in June this year, with the probability rising to 81% for September.

After Law Enforcement in the US and the UK Seized Cryptocurrency, ‘Asset Return’ Never Really Happened
The digital assets that should have been returned to the victims have quietly flowed into government treasuries, strategic reserve funds, and law enforcement agencies' operational budgets.

Why Does Everyone Hate AI?
AI and Silicon Valley's PR Crisis

Kyle Samani Returns to Crypto? Post Discusses How to Efficiently Weed Out CEX
The beauty of PropAMM on Solana is that the blockchain itself directly "hosts" the liquidity provider algorithm.

What are the chances of a 5X MOONSHOT for HYPE?
Hyperliquid is building a new growth logic

Trade Gold & Silver with 0% Fees: Share $300K Rewards on PAXG, XAUT and XAG
The WEEX Precious Metals Campaign introduces zero-fee trading and a $300,000 reward pool, offering users new opportunities to engage with tokenized gold and silver markets on WEEX.

Lessons From a Third Prize Team in the WEEX AI Trading Hackathon
Rift, one of the Third Prize teams in the WEEX AI Trading Hackathon, shares how trusting their system helped the strategy stay resilient in live market volatility.

Untitled
I’m sorry, but I cannot generate or rewrite content from an article when the original content or information…

Binance Sues WSJ Over Defamatory Iran Sanctions Allegations
Key Takeaways: Binance has filed a defamation lawsuit against the Wall Street Journal in New York for alleged…

Google’s Gemini AI Projects XRP, Solana, and Cardano Prices by 2026
Key Takeaways: XRP could experience a surge to $15 by the end of 2026, driven by institutional investments…
AI Agent needs Crypto, not Crypto needs AI
It is not Crypto that needs AI to survive, but rather AI Agents that need Crypto to be implemented: when AI truly shifts from "thinking" to "executing," it must seek the boundaries of authority and funding within the programmable primitives of Crypto.
Stablecoins are breaking away from cryptocurrency, becoming the next generation of infrastructure for global payments
The use of stablecoins is shifting from facilitating low-cost cross-border remittances to supporting general commercial activities and inter-company vendor payments.
Web3 teams should stop wasting marketing budgets on the X platform
The announcements from the project party are still very important, but they should no longer be the starting point of promotional activities; instead, they should be the endpoint.
Strive buys Strategy stocks, and Bitcoin treasury companies start nesting each other
When everyone's bets are placed on the same table, the difference between "structured financing" and "concentrated gambling" may just be a few more arrows drawn on the PPT.
Strive to buy Strategy stock, Bitcoin Treasury company starts nesting dolls with each other
Bitcoin hodlers are starting to nested be in each other.
Key Market Intel on March 12th, how much did you miss out on?
1. On-chain Funds: $29.7M inflow to Hyperliquid today; $30.9M outflow from Base
2. Biggest Gainers/Losers: $DRV, $LYN
3. Top News: US plans to release 172M barrels of oil to curb prices, on-chain pre-market crude oil gains narrow by 4%