Karma Prop Traders suspended operations last week due to liquidity issues.
At first, the owner dismissed takeover offers, but he is now reporting being a step away from a deal.
Karma Prop
Traders announced its closure last week. Founder Eshan Balapatabendi claimed he
encountered “roadblocks” that made his business
“unsustainable.” However, days later, an update suggested the firm is
in an “advanced stage of negotiations” with a “leading prop
firm” prepared to take over Karma's client base.
The Acquisition Wasn't Supposed to Be the
“Right Move,” But Something Has Changed
Karma
entered the market just two months ago, initially garnering positive reviews.
Shortly before its downfall, it partnered with Match-Trade Technologies,
providing traders with Match-Trader integrated with TradingView.
Unexpectedly,
the firm lost liquidity, which Balapatabendi attributed to “cheaters”
exploiting loopholes in the company's challenges system. In the same statement,
he suggested he had received numerous takeover proposals but didn't consider
them “the right move.” Instead, he promised to refund all honest
clients.
Mere days
after this announcement, the narrative shifted dramatically. Karma's founder
informed that his firm is negotiating with another prop firm considering taking
over the defunct entity's accounts.
Source: Karma's Discord
“KARMA
is currently in an advanced stage of negotiations with a leading Prop Firm in
the industry regarding a possible acquisition. The Company appreciates our
transparency and sees huge benefits to the community we have built,”
Balapatabendi commented on the firm's official Discord.
“Should
the negotiations finalize as planned, all active accounts with KARMA would be
transferred to the Acquiring Company,” he added.
Increasing Prop Firm
Closures
Karma isn't
the only prop firm facing recent troubles. Reportedly, 20 different smaller
prop trading firms closed just last week due to Eightcap's decision to cease
support for MT4 and MT5, triggered by licensing issues with MetaQuotes.
Last week, Finance
Magnates reported that Indigo Trader Funding, which filed for UK
strike-off, and Funds For Traders, left without trading platforms after
Eightcap's exit, disappeared from the market.
According
to a survey by PipFarm, another prop trading firm, this is a risky game where
most investors lose, but substantial money is at stake. The average investor
allocates over $4,200 to challenges, and a group of several hundred respondents
admitted to collectively spending nearly $2 million on them.
Karma Prop
Traders announced its closure last week. Founder Eshan Balapatabendi claimed he
encountered “roadblocks” that made his business
“unsustainable.” However, days later, an update suggested the firm is
in an “advanced stage of negotiations” with a “leading prop
firm” prepared to take over Karma's client base.
The Acquisition Wasn't Supposed to Be the
“Right Move,” But Something Has Changed
Karma
entered the market just two months ago, initially garnering positive reviews.
Shortly before its downfall, it partnered with Match-Trade Technologies,
providing traders with Match-Trader integrated with TradingView.
Unexpectedly,
the firm lost liquidity, which Balapatabendi attributed to “cheaters”
exploiting loopholes in the company's challenges system. In the same statement,
he suggested he had received numerous takeover proposals but didn't consider
them “the right move.” Instead, he promised to refund all honest
clients.
Mere days
after this announcement, the narrative shifted dramatically. Karma's founder
informed that his firm is negotiating with another prop firm considering taking
over the defunct entity's accounts.
Source: Karma's Discord
“KARMA
is currently in an advanced stage of negotiations with a leading Prop Firm in
the industry regarding a possible acquisition. The Company appreciates our
transparency and sees huge benefits to the community we have built,”
Balapatabendi commented on the firm's official Discord.
“Should
the negotiations finalize as planned, all active accounts with KARMA would be
transferred to the Acquiring Company,” he added.
Increasing Prop Firm
Closures
Karma isn't
the only prop firm facing recent troubles. Reportedly, 20 different smaller
prop trading firms closed just last week due to Eightcap's decision to cease
support for MT4 and MT5, triggered by licensing issues with MetaQuotes.
Last week, Finance
Magnates reported that Indigo Trader Funding, which filed for UK
strike-off, and Funds For Traders, left without trading platforms after
Eightcap's exit, disappeared from the market.
According
to a survey by PipFarm, another prop trading firm, this is a risky game where
most investors lose, but substantial money is at stake. The average investor
allocates over $4,200 to challenges, and a group of several hundred respondents
admitted to collectively spending nearly $2 million on them.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
73% of Young Investors Say Traditional Wealth Building Is Broken – Here’s How They Trade Instead
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
