MyForexFunds: Suspected of Over $300 Million in Fraud and Accused by Multiple Regulators

The U.S. Commodity Futures Trading Commission (CFTC) has charged Murtuza Kazmi and his company, Traders Global Group Inc. with fraud under the name MyForexFunds. The regulator alleges that the individual and his company fraudulently solicited customers to engage in leveraged, margined, or financed retail forex, as well as leveraged retail commodity transactions.

The CFTC says that since November 2021, the company has solicited more than 135,000 registered users and received $310 million in user funds. It is further alleged that the defendant Kazmi used the fraudulently obtained funds to purchase mansions and luxury cars, and also transferred tens of millions of dollars of the fraudulent proceeds to his personal accounts.

It was revealed that in April 2022, Kazmi purchased a Lal at auction for $1.6 million. Between April and May 2022, he spent $4.9 million on a property in Richmond Hill and $1.03 million on a five-bedroom property in New Jersey.

According to the CFTC, MyForexFunds offered retail customers the opportunity to become "professional traders" by using Traders Global's funds to trade with a third-party "liquidity provider" and earn a profit. However, the so-called third-party "liquidity providers" were almost counterparties to the client's trades. The firm used various methods to try to discourage very few successful clients from reducing their profits, increasing their losses, and minimizing the likelihood of client profits.

Meanwhile, last month the Ontario Securities Commission (OSC) issued a temporary cease trade order against MyForexFunds, prohibiting the operating company and its operator from continuing to trade in securities, stating that they may have violated securities laws.

In addition, the Spanish National Securities Market Commission (CNMV) warned MyForexFunds and its company on January 23rd of this year, reminding investors that the entity was not authorized to offer investment services.

MyForexFunds issued an announcement referring to the CFTC and OSC's injunctions and stated that the company suspended its operations.

The case of MyForexFunds has also generated public debate.