Breaking News – US Court Orders Release and Return Majority of My Forex Funds Founder’s Assets

On Tuesday night, the New Jersey court partially granted My Forex Fund’s request in a lawsuit filed against the company by the CFTC. The court ordered the release and return of most of the assets belonging to the Founder and CEO, Murtuza Kazmi, valued at approximately $100 million, but $12.08 million of these assets will remain frozen. The current temporary receiver was also discharged, and a new one was not appointed.

In late August, the CFTC filed a complaint against My Forex Funds, its CEO, and associated entities, alleging fraudulent activities totaling over $300 million. This complaint accused the defendants of deceptive practices related to leveraged retail foreign exchange and leveraged retail commodity transactions.

Ian McGinley, the Director of Enforcement at the CFTC, said that the CFTC’s case against My Forex Funds’ defendants is symbolic of their commitment to stamping out retail fraud in the markets. Anyone offering or entering into leveraged retail forex contracts without registration, or offering or entering into leveraged retail commodity contracts off-exchange, is acting in clear violation of the law.

My Forex Funds Challenge to CFTC

My Forex Fund recently contended that the CFTC “recklessly mischaracterized transfers” involving significant tax payments. Kazmi and his legal team challenged the fundamental aspects of the lawsuit and raised questions about the alleged fraudulent activities. The firm also raised questions about the jurisdiction of the CFTC over its transactions. According to a recent report by Finance Magnates, its defense team dismissed CFTC’s accusations and asserted that My Forex Funds never solicited or accepted customer investments.

The CFTC’s complaint exposed a series of deceptive practices, including terminating customer accounts under false pretexts, misleading commission assessments, and using specialized software to execute customer orders at unfavorable prices. The complaint asserts that such practices actively worked against customers, reducing profits and increasing losses, all while My Forex Funds claimed to prioritize customers’ success.

The legal actions extend beyond US borders. The Ontario Securities Commission has issued a temporary cease-trade order against Traders Global Group Inc. and Kazmi.

My Forex Funds’ defense maintains that customers never invested their funds; instead, the company’s capital funded all accounts. Customers allegedly served as independent contractors, engaging in trading services with a significant portion conducted on simulated accounts.

The defense also contends that the CFTC misrepresented two substantial pre-authorized payments of $27,000,000 CAD and $4,500,000 CAD as transfers to My Forex Funds’ CEO. Contrary to this, the defense argues that these funds were directed to the Canadian tax authorities.

The motion further questioned the unprecedented nature of the statutory restraining order, arguing that shutting down a business and freezing personal assets is an extreme measure.On Tuesday night, the New Jersey court partially granted My Forex Fund’s request in a lawsuit filed against the company by the CFTC. The court ordered the release and return of most of the assets belonging to the Founder and CEO, Murtuza Kazmi, valued at approximately $100 million, but $12.08 million of these assets will remain frozen. The current temporary receiver was also discharged, and a new one was not appointed.

CFTC Allegation Against My Forex Funds

In late August, the CFTC filed a complaint against My Forex Funds, its CEO, and associated entities, alleging fraudulent activities totaling over $300 million. This complaint accused the defendants of deceptive practices related to leveraged retail foreign exchange and leveraged retail commodity transactions.

Ian McGinley, the Director of Enforcement at the CFTC, said that the CFTC’s case against My Forex Funds’ defendants is symbolic of their commitment to stamping out retail fraud in the markets. Anyone offering or entering into leveraged retail forex contracts without registration, or offering or entering into leveraged retail commodity contracts off-exchange, is acting in clear violation of the law.

My Forex Fund recently contended that the CFTC “recklessly mischaracterized transfers” involving significant tax payments. Kazmi and his legal team challenged the fundamental aspects of the lawsuit and raised questions about the alleged fraudulent activities. The firm also raised questions about the jurisdiction of the CFTC over its transactions. According to a recent report by Finance Magnates, its defense team dismissed CFTC’s accusations and asserted that My Forex Funds never solicited or accepted customer investments.

The CFTC’s complaint exposed a series of deceptive practices, including terminating customer accounts under false pretexts, misleading commission assessments, and using specialized software to execute customer orders at unfavorable prices. The complaint asserts that such practices actively worked against customers, reducing profits and increasing losses, all while My Forex Funds claimed to prioritize customers’ success.

The legal actions extend beyond US borders. The Ontario Securities Commission has issued a temporary cease-trade order against Traders Global Group Inc. and Kazmi.

My Forex Funds’ defense maintains that customers never invested their funds; instead, the company’s capital funded all accounts. Customers allegedly served as independent contractors, engaging in trading services with a significant portion conducted on simulated accounts.

The defense also contends that the CFTC misrepresented two substantial pre-authorized payments of $27,000,000 CAD and $4,500,000 CAD as transfers to My Forex Funds’ CEO. Contrary to this, the defense argues that these funds were directed to the Canadian tax authorities.

The motion further questioned the unprecedented nature of the statutory restraining order, arguing that shutting down a business and freezing personal assets is an extreme measure.

As at the writing of this article, My Forex Funds website remains down