My Forex Funds CFTC Legal Trail

My Forex Funds Did Not Just Beat the CFTC. It Exposed a Regulatory Meltdown

For nearly two years, the case against My Forex Funds was framed as one of the biggest regulatory takedowns the prop trading world had ever seen. The Commodity Futures Trading Commission accused Traders Global Group, the company behind My Forex Funds, and its chief executive Murtuza Kazmi of collecting more than $310 million in customer fees through deception and moving C$31.5 million out of reach. On paper, it looked like a devastating fraud case. In court, it ended very differently.

In May 2025, U.S. District Judge Edward Kiel dismissed the CFTC’s complaint with prejudice, meaning the case was thrown out for good. The court also sanctioned the agency and ordered it to pay the defendants’ legal fees tied to the sanctions fight. That was not a procedural hiccup. It was a judicial wrecking ball.

The reason was even more damaging than the dismissal itself. A court appointed special master found that the CFTC had engaged in willful and bad faith conduct, made multiple false statements, and failed in its duty of candor to the court. Judge Kiel adopted that recommendation in full. Acting CFTC Chairman Caroline Pham then publicly called the agency’s conduct “inexcusable” and said the court had found “willful and bad faith conduct” and “numerous instances of sanctionable behavior” over the course of a year.

That is where the case stops being a story about My Forex Funds alone and starts becoming a story about the regulator itself.

The most explosive detail centered on the C$31.5 million transfer that the CFTC had presented as suspicious. According to the court record summarized by Reuters, the agency already knew before filing suit that the money was a legitimate tax payment to Canadian authorities, a fact confirmed by the Ontario Securities Commission. Yet the case still moved forward, and that exculpatory information was not properly disclosed to the court at the outset. That was not just sloppy. It was one of the core reasons the case imploded.

That point matters because it changes the psychology of the entire saga. For months, the public narrative around My Forex Funds was built on the idea that regulators had caught a major prop firm in the act. But when a federal judge throws out the complaint with prejudice because the government itself acted in bad faith, the spotlight shifts brutally. The question is no longer just what the firm did. The question becomes how far the regulator stretched its own power to build the case.

And the fallout did not end with the dismissal. In July 2025, Judge Kiel ordered the CFTC to pay more than $3.1 million in attorney fees to Traders Global Group. Reuters reported that the agency did not even contest the fee request. By that point, the damage to the CFTC’s credibility was already severe. A dismissal is one thing. A multimillion dollar fee award against a federal regulator is something else entirely.

This is why calling the outcome a simple legal victory undersells it. My Forex Funds did not just survive the case. The case collapsed so badly that it turned into a public indictment of the enforcement process itself. Even Caroline Pham’s own statement reads less like routine damage control and more like an admission that something had gone deeply wrong inside the agency. She said the failures were foreseeable, avoidable, and pointed to a broader cultural breakdown in the Division of Enforcement.

That does not mean the court held a full merits trial and declared My Forex Funds innocent of every accusation. It means something just as consequential in practical terms. The government’s case was destroyed by its own misconduct before it could carry those allegations to a proper finish. For the prop firm industry, that distinction matters. This was not a clean regulatory win that later faded. It was an enforcement disaster that detonated in public view.

The wider message to traders and firms is chilling. When a regulator can launch a case this large, freeze reputations in place, drive headlines for months, and then get sanctioned for bad faith conduct and false statements, the system itself becomes part of the story. My Forex Funds may have entered the courtroom as the accused. By the end, the CFTC was the institution under the harsher judgment.

Editorial source note: This article was independently written for editorial purposes based on public court records, Reuters reporting, and an official CFTC statement. It does not reproduce source wording.

Sources reviewed: U.S. District Court for the District of New Jersey order dated May 13, 2025. CFTC Acting Chairman Caroline Pham statement dated May 13, 2025. Reuters reports dated May 14, 2025 and July 14, 2025.