The retail proprietary trading and trader-funded firms (TFFs) market has seen another consolidation. Last week, MyFlashFunding, which had been struggling with platform issues, announced its acquisition by competitor Sway Funded.

MyFlashFunding Acquired by Another Prop Firm

The acquisition news emerged at the beginning of last week. Social media posts from both companies indicate that all MyFlashFunding clients will be transferred to Sway Funded, with the new owner responsible for the “immediate” payout of funds that have been pending for weeks.

MyFlashFunding clients were asked to close all their positions by last Wednesday, July 24. However, the prop firm's brand isn't disappearing entirely, nor are its social media channels. It will no longer function as a trading service provider but as an “educational hub”.

WE HAVE SOME EXCITING NEWS TO SHARE ⚡

Sway Funded is expanding, and we're thrilled to announce that MyFlashFunding has been acquired by Sway Funded.

Migration of Existing Accounts:

All clients will be migrated and taken care of by Sway Funded, and all pending payouts will… pic.twitter.com/UQgK4z1Kvf

— MyFlashFunding (@myflashfunding) July 22, 2024

“We understand the importance of a smooth transition. MyFlashFunding traders will be seamlessly migrated to the Sway Funded platform, ensuring they can continue their trading journey without disruption,” stated the announcement regarding the acquisition decision.

📢 ANNOUNCEMENT TIME - rain met lightning!
Sway Funded has acquired MyFlashFunding.
Welcome to the Sway family MyFF - let the storm begin! 🌩️⚡@myflashfunding pic.twitter.com/6SiNLbxxBY

— Sway Funded (@SwayFunded) July 22, 2024

The move has sparked considerable controversy among clients, with social media commentators suggesting that the MyFlashFunding founder is allegedly evading responsibility.

MyFlashFunding CEO Comments: “I could've filed bankruptcy”

Blake Carter, Founder and CEO of MyFlashFunding, has a different perspective on the matter.

As he admits, “I could've ran, I could've went ghost, I could've filed bankruptcy Bankruptcy Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Read this Term,” choosing an easier path, unfortunately often observed in the prop firm industry in recent months.

I could've ran, I could've went ghost, I could've filed bankruptcy.

Whatever you want to say about the acquisition or how you feel does not concern me.

My only goal here was to ensure traders were taken care of after we had our platform issues, and we were able to accomplish…

— Blake Carter (@blakemyff) July 24, 2024

Instead, he opted for a scenario where traders could receive their due funds, which had become impossible to pay out due to platform issues encountered by MyFlashFunding.

“Whatever you want to say about the acquisition Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Read this Term or how you feel does not concern me,” Carter commented.

If Sway Funded indeed pays out the overdue funds, which have been suspended since April–May, Carter's decision will defend itself.

The Origins of the Problem

MyFlashFunding's troubles, like those of many other prop firms this year, began in February 2024. The catalyst was a decision by MetaQuotes, the creator of the popular trading platform MetaTrader, to suspend licenses for firms and brokers associated with prop trading services in the United States.

MyFlashFunding attempted to resolve the issue by migrating to the competing Match-Trader platform and partnering with a broker licensed by the Australian ASIC.

However, clients complained that the spreads offered by FinesseFX were too wide compared to the previous offering. Moreover, in subsequent months, an increasing number of voices emerged suggesting alleged blocking or delaying of fund withdrawals.

Carter addressed the issue, suggesting that only isolated cases occurred, affecting a very narrow group of clients, resulting from technical problems.

We've noticed some concerns circulating that suggest MyFlashFunding does not fulfil its payout obligations to traders. I want to address these concerns head-on and assure you that such claims are not true.

Since the inception of MyFlashFunding a year ago, we have consistently…

— Blake Carter (@blakemyff) May 10, 2024

Ultimately, however, the problem proved to be larger than suggested, and the platform issues that began in February eventually forced the company to decide to sell and transfer clients to another entity.