A U.S. federal judge has dismissed the Commodity Futures Trading Commission’s (CFTC) complaint against Traders Global Group Inc., the parent company of My Forex Funds, with prejudice. The court also approved a sanctions motion against the regulator.

The sanctions result from a recommendation by Special Master Jose L. Linares, who urged the court to dismiss the case with prejudice and impose penalties on the CFTC. He stated the agency misled the court in its enforcement action against Traders Global.

Linares noted that the CFTC had made errors in a sworn declaration and took steps to obfuscate. The court redacted the names of those responsible, but prior filings indicate involvement of CFTC's lead attorney Ashley Burden and investigator Matthew Edelstein.

Court Orders CFTC to Pay Fees

In an order signed on May 13, 2025, Judge Edward S. Kiel ruled in favor of the defendants, directing the CFTC to pay legal fees related to the sanctions motion. The CFTC’s separate motion to dismiss was denied as moot.

The defendants have been instructed to submit an affidavit outlining their fees and costs, following the court’s schedule.

You may find it interesting at FinanceMagnates.com: My Forex Funds Case: “Careless and Sloppy” CFTC Lead Attorney Admits Shortcomings.

CFTC Places Staff on Administrative Leave

The CFTC placed four lawyers and one investigator on administrative leave due to allegations of misconduct related to the fraud case against Traders Global Group Inc. The regulator cited potential violations of laws, government ethics, and professional conduct rules.

Investigations are ongoing, but the agency did not confirm the number of staff involved or specifically mention My Forex Funds. A recommendation has also been filed following a review of allegations of misconduct, including false statements to the court. These actions are under the leadership of Acting Chair Caroline Pham.