What did the CFTC case against My Forex Funds mean for prop firms?
Quick answer
In August 2023 the US CFTC sued Traders Global Group, the company behind My Forex Funds, and froze its assets. In May 2025 a federal judge dismissed the case with prejudice and sanctioned the CFTC for misleading the court. The dismissal did not settle whether challenge-based prop firms fall under US commodities law.
Detailed answer
General information, not legal, tax or regulatory advice. Rules differ by country and change over time; confirm your position with a qualified professional before acting on it.
What happened, in short:
- August 2023: the CFTC filed an enforcement action alleging fraud, and the firm's operations stopped under an asset freeze.
- 2024 to 2025: a court-appointed special master found that the agency had made false representations to the court.
- May 2025: the US District Court in New Jersey dismissed the case with prejudice and ordered the CFTC to pay costs related to the sanctions motion.
What it means for operators:
- The case ended on the agency's conduct, not on a ruling about whether the prop model is lawful.
- It showed how quickly a firm can be shut down while a case is pending.
- It increased the industry's attention to clear disclosures and orderly operations.
This is a summary of public reporting, not legal advice.
Takeaway for founders
Keep clean records, avoid misleading claims and describe accounts accurately, so your business could withstand scrutiny.
PropExecutor team · Updated
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