My Forex Funds Clone Targets Traders While the Prop Trading Firm Battles CFTC at Court

While the troubled prop trading brand My Forex Funds is fighting the Commodity Futures Trading Commission (CFTC) in court, scammers are taking advantage. A clone of My Forex Funds has appeared, using the name and branding of the now-shuttered prop trading brand.

Finance Magnates has confirmed that the brand is a clone and has no ties with the real My Forex Funds or anyone in that company.

The Menace of Clones in the Trading Industry

Claimed to be registered in the Cayman Islands, the clone also has a decent social media following, with 28.1K followers on Instagram. However, the scammers have acquired an Instagram account with a follower base or purchased followers to make the account look authentic. The first active post from this Instagram account was made on 20 May.

Meanwhile, the real My Forex Funds Instagram account has 152K followers. However, that account has remained inactive since 1 September 2023, when the CFTC first brought the fraud charges against the company.

The Fight Between My Forex Funds and CFTC

The CFTC’s initial actions against My Forex Funds included freezing all assets, forcing the platform to shutter its operations overnight. Although the regulator initially gave control of the My Forex Funds website to the appointed temporary receiver, the court later overturned the order, giving the website’s control back to the prop trading company. However, the website offers no services yet and only displays the branding.

The My Forex Funds clone website and social media accounts look authentic, but users must be cautious when interacting with such scams. Furthermore, the lack of regulations on prop trading also makes the platforms and customers in this niche industry more vulnerable.

Meanwhile, the legal battle between the CFTC and My Forex Funds took a dramatic turn over the course of almost a year. The prop trading firm is seeking sanctions against the regulator over the misrepresentation of facts in court. Interestingly, CFTC’s Commissioner Caroline Pham recently pointed out the regulatory misconduct in the My Forex Funds case and heavily criticised the staff of the enforcement division.