The court recommendation came a week after the CFTC sent four lawyers and one investigator involved in the My Forex Funds case to "administrative leave".
The agency has been blamed for allegedly mischaracterising a tax payment to freeze all assets of the company running the prop firm and its CEO.
A Special Master has recommended that a U.S. court impose sanctions and "dismiss with prejudice" the case brought by the Commodity Futures Trading Commission (CFTC), accusing the agency of deliberately misleading the court in its high-profile enforcement action against Traders Global Group Inc., the company behind My Forex Funds.
According to Special Master Jose L. Linares:
“In multiple instances, with full knowledge of the error in a sworn declaration submitted to the Court, rather than be upfront, direct, and transparent, the CFTC took deliberate steps down a path of obfuscation and avoidance. In this case in particular, the need for specific deterrence is paramount, and a significant sanction is warranted.”
The court document redacted the names of the attorneys and investigators responsible for the alleged mishandling of the My Forex Funds case. However, from the previous court filings, it is clear that CFTC's lead attorney Ashley Burden was involved in the case. The CFTC investigator whose name came up in the previous court filings is Matthew Edelstein.
The court recommendation came a week after the CFTC placed some of its staff on administrative leave. Although the agency did not detail, a Bloomberg report revealed that four lawyers and one investigator were sent to administrative leave due to their misconduct in the My Forex Funds case.
Murtuza Kazmi, CEO at My Forex Funds
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.
Sanctions Request against the CFTC
My Forex Funds even filed a sanctions motion against the CFTC for alleged misrepresentation of facts. According to previous 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.”
Pham responded to the latest court recommendation:
“As described in detail in the Court’s report, the CFTC engaged in willful and bad faith conduct by making multiple false statements to the Court and other ‘numerous instances of sanctionable behavior’ over the course of a year. This is inexcusable.”
In a joint statement, My Forex Funds’ legal counsel—Quinn Emanuel and King & Spalding—stated:
“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. As the Special Master’s findings confirm, the CFTC staff misled the court and violated their duty of candor in order to freeze our clients’ assets. Those already serious transgressions were then compounded by a series of decisions by the CFTC to obfuscate and minimize its wrongdoing—in the Special Master’s words, intentionally and in bad faith."
A Special Master has recommended that a U.S. court impose sanctions and "dismiss with prejudice" the case brought by the Commodity Futures Trading Commission (CFTC), accusing the agency of deliberately misleading the court in its high-profile enforcement action against Traders Global Group Inc., the company behind My Forex Funds.
According to Special Master Jose L. Linares:
“In multiple instances, with full knowledge of the error in a sworn declaration submitted to the Court, rather than be upfront, direct, and transparent, the CFTC took deliberate steps down a path of obfuscation and avoidance. In this case in particular, the need for specific deterrence is paramount, and a significant sanction is warranted.”
The court document redacted the names of the attorneys and investigators responsible for the alleged mishandling of the My Forex Funds case. However, from the previous court filings, it is clear that CFTC's lead attorney Ashley Burden was involved in the case. The CFTC investigator whose name came up in the previous court filings is Matthew Edelstein.
The court recommendation came a week after the CFTC placed some of its staff on administrative leave. Although the agency did not detail, a Bloomberg report revealed that four lawyers and one investigator were sent to administrative leave due to their misconduct in the My Forex Funds case.
Murtuza Kazmi, CEO at My Forex Funds
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.
Sanctions Request against the CFTC
My Forex Funds even filed a sanctions motion against the CFTC for alleged misrepresentation of facts. According to previous 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.”
Pham responded to the latest court recommendation:
“As described in detail in the Court’s report, the CFTC engaged in willful and bad faith conduct by making multiple false statements to the Court and other ‘numerous instances of sanctionable behavior’ over the course of a year. This is inexcusable.”
In a joint statement, My Forex Funds’ legal counsel—Quinn Emanuel and King & Spalding—stated:
“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. As the Special Master’s findings confirm, the CFTC staff misled the court and violated their duty of candor in order to freeze our clients’ assets. Those already serious transgressions were then compounded by a series of decisions by the CFTC to obfuscate and minimize its wrongdoing—in the Special Master’s words, intentionally and in bad faith."
iFOREX Adds Saudi and South Korean Equity CFDs as IPO Is Delayed
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
