MyForexFunds Shutdown to Comeback: The Full Story Every Trader Needs to Read

August 29, 2023. One morning, over 120,000 traders woke up and discovered that MyForexFunds — the world's largest prop trading firm at the time — was completely gone. Accounts frozen. Website down. Payouts cancelled. No warning. No goodbye.

Two and a half years later, the story has flipped in the most dramatic way possible.

The CFTC, the very US regulator that killed MFF overnight, was caught lying in court. The case was dismissed. The regulators were sanctioned. And MyForexFunds is now fighting its way back.

This is the full story — the shutdown, the legal war, the vindication, and where things stand right now in April 2026. If you were one of those 120,000 traders, or if you're simply trying to understand what the MyForexFunds case means for the prop trading world, you're in the right place.

What Was MyForexFunds, Really?

Before we get into the drama, let's establish context.

MyForexFunds (MFF) was founded in 2020 by Murtuza Kazmi and headquartered in Vaughan, Ontario, Canada. Within just three years, it grew from a small Canadian startup into the world's largest proprietary trading firm, supporting traders across more than 80 countries.

The numbers were staggering:

• 135,000+ registered traders

• $290 million+ paid out to traders before the shutdown

• Over 5 million website visitors in July 2023 alone

• Processing roughly 2,000 new customer sign-ups every single day

MFF offered three account types — Rapid, Evaluation, and Accelerated — where traders would pay a challenge fee, prove their skills under specific risk rules, and then earn a share of simulated profits. The profit splits were generous, the rules were clear (at least on paper), and the community was massive.

And then, overnight, it all disappeared.

The Day MyForexFunds Shut Down: August 29, 2023

On August 29, 2023, the U.S. Commodity Futures Trading Commission (CFTC) did something extraordinary. Without warning, it obtained an emergency court order to freeze every asset belonging to MyForexFunds and its founder Murtuza Kazmi.

The CFTC's complaint was devastating in its accusations:

• $300+ million in fraud against customers

• Operating as an unregistered foreign exchange dealer

• Artificially delaying trade execution to harm traders

• Manipulating price slippage intentionally

• Charging hidden $3-per-trade commissions

• Running a business model designed so traders could not win

The very next day, Judge Robert B. Kugler of the US District Court of New Jersey granted the Statutory Restraining Order (SRO). The company was placed into receivership. Assets frozen. Systems locked. Operations stopped cold.

Simultaneously, Canada's Ontario Securities Commission (OSC) launched parallel enforcement proceedings, issuing a temporary cease-trade order against Traders Global Group Inc., MFF's parent company.

For over 120,000 traders across 80 countries, there was zero notice. No email. No warning. Just silence.

The website posted a single message about the regulatory action — and then went dark.

The CFTC's Claims: What Were They Actually Accusing MFF Of?

To understand the comeback, you need to understand what MFF was being accused of.

The CFTC alleged that MyForexFunds led customers to believe they were trading against real, independent third-party liquidity providers. In reality, according to the complaint, customers were on simulated accounts where MFF itself acted as the direct counterparty — meaning every trader's loss was MFF's gain.

Beyond that, the CFTC alleged MFF used:

• Artificial trade delays to reduce trader profitability

• Manipulated slippage to eat into winning trades

• Hidden commissions that weren't disclosed

• Unfair account termination practices to deny payouts

The CFTC's narrative painted MFF as a system deliberately designed to take fees from aspiring traders and make sure they failed.

There was one more bombshell allegation: the CFTC claimed Kazmi had transferred millions of dollars of customer funds into his personal accounts and spent it on luxury items.

It was the perfect story to justify an emergency shutdown with no due process.

Except almost none of it held up in court.

The Legal Fight: 2023 to 2025

For over two years, Murtuza Kazmi and MFF could say almost nothing publicly. The nature of the legal proceedings required near-total silence. The trading community was left to speculate, misinformation spread wildly, and most people assumed MFF was finished for good.

Behind the scenes, MFF's legal team was tearing the CFTC's case apart piece by piece.

The case eventually came to a head when Special Master Jose L. Linares was appointed to review the CFTC's conduct during the litigation. What he found was explosive.

The CFTC had misrepresented facts to the court — not accidentally, but deliberately.

The most egregious example: The CFTC had claimed that a transfer of CAD $31.5 million was evidence of "asset dissipation"—Kazmi allegedly moving money out of reach. But here's the thing: the Ontario Securities Commission had told the CFTC by email on August 17, 2023—twelve days before the lawsuit was filed—that this transfer was a legitimate corporate tax payment to Canada Revenue Agency.

The CFTC knew. They filed anyway. They used it as evidence anyway.

The special master described the CFTC's actions as "willful" and characterized them by "bad faith, obfuscation, and avoidance." The CFTC had repeatedly failed its duty of candor to the court.

On May 13, 2025, US District Judge Edward S. Kiel made it official:

• Case dismissed — with prejudice. It cannot be refiled.

• CFTC sanctioned $3.1 million in attorney fees for willful misconduct.

• Complete vindication for MyForexFunds in the United States.

For the first time in two years, Kazmi could speak. And he had a lot to say.

The Vindication: What the Court Actually Found

The significance of this ruling cannot be overstated.

A case dismissed "with prejudice" means the CFTC cannot come back with the same allegations. It's not a technicality. It's not a settlement. It's a federal judge looking at the evidence and saying, "The regulator lied, and the defendant wins."

Four CFTC lawyers and one investigator were subsequently placed on administrative leave. US Senator Charles Grassley raised public questions about the CFTC's "process and procedure" around internal disciplinary actions.

Meanwhile, in Canada, the Ontario Superior Court was simultaneously scaling back the receivership. By October 2025, the Canadian court issued an endorsement ordering most of MFF's business assets returned. In December 2025, the full Canadian Asset Handover Order was approved—MFF was officially back in control of its data, systems, and remaining assets.

And in February 2026, the Ontario Superior Court ordered an unprecedented $80,000 costs award against the Ontario Securities Commission—a rare and pointed critique of the regulator's conduct. Justice Kimmel stated plainly that "the court has not been overly impressed with the manner in which the Commission has been carrying out its public interest mandate in this case."

Two regulators. Two countries. Both sanctioned or rebuked.

For MFF, it was total vindication.

What Kazmi Said: Breaking Two Years of Silence

In October 2025, MFF's official X account posted for the first time since the shutdown. The message was brief: "It's been a long time."

The trading community went into a frenzy.

What followed was a series of carefully structured updates — what MFF called "Chapters" — walking traders through the legal outcomes and the road ahead. In a major video appearance, Kazmi broke his silence completely:

• The CFTC made false accusations and acted without due process

• The overnight freeze directly impacted over 60,000 funded traders

• In the days immediately before the shutdown, MFF had paid out verified six-figure sums to traders — evidence the firm was operating legitimately

• Payouts would resume as soon as systems and data were restored

• MFF warned traders to ignore misinformation from third-party influencers and rely only on official channels

It was the clearest signal yet: MyForexFunds wasn't just surviving — it was returning with intent.

The 2026 Comeback Roadmap: Where Things Stand Right Now

As of April 2026, here is the confirmed status of MFF's comeback:

Phase Status

In February 2026, MFF made a public commitment via PR Newswire: every trader with a valid, verified payout request from August 2023 will be eligible to receive their funds. Kazmi stated directly: "If you had a valid and verified payout request in August 2023, we are committed to ensuring those funds reach you."

If you were an MFF trader with a pending payout, you would need to take action now. MFF has an official Refund & Claim Form where you can submit your updated information. Do not rely on third-party channels or influencer accounts for verification — use only official MFF communications.

What This Means for the Prop Trading Industry

The MyForexFunds case isn't just about one firm. It sent shockwaves through the entire prop trading industry — and the aftershocks are still being felt.

For regulators: The CFTC being sanctioned for misconduct in a high-profile case is not a small thing. It raises serious questions about how regulators use emergency powers and whether the burden of proof is being applied consistently. This case will be cited for years.

For prop firms: The MFF shutdown created a chilling effect. Several prop firms tightened their own compliance and transparency practices almost immediately after 2023. The industry is under far more scrutiny now — which, honestly, is probably a good thing for legitimate operators.

For traders: The case is a reminder that the prop trading space operates in a gray zone. Regulatory clarity around "simulated capital" trading is still evolving. The court's characterization of MFF's activities as "simulated trading" highlights exactly why traders need to understand what they're entering into.

If you're looking for prop firms that are currently active, fully operational, and paying traders while MFF continues its recovery, we've covered the best options in our Top Prop Firms for 2025/2026 guide — comparing profit splits, evaluation rules, payout speeds, and more.

Should Traders Trust MyForexFunds Again?

This is the honest question, and it deserves an honest answer.

The legal facts are clear: MFF won. The CFTC was caught misrepresenting evidence. The case was thrown out. By legal standards, MFF was wrongfully shut down.

That said, cautious optimism is warranted. Here's why:

In MFF's favor:

Over $290 million paid out to traders before the shutdown — real money, real payouts

Federal court dismissed every fraud allegation with prejudice

Murtuza Kazmi has been transparent in his communications post-vindication

The firm is taking concrete steps to honor 2023 payouts before relaunching

Things to watch:

• Full platform relaunch date is still unconfirmed

• Regulatory frameworks for prop firms remain unclear in several jurisdictions

• MFF will need to demonstrate stronger compliance structures going forward

The bottom line: MFF has earned the right to rebuild trust. Whether it earns your trust back as a trader is a decision you'll need to make based on the full picture — not just the legal outcome, and not just the emotional narrative.

Final Thoughts

The MyForexFunds story is one of the most dramatic in the history of retail trading. A firm built from zero to the world's largest prop trading platform in three years. Destroyed overnight by an emergency regulatory order. Two years of silence. And then — a comeback built on a complete legal vindication.

The CFTC came in with all its power, made serious claims, and ultimately was found to have misled the court. Two regulators in two countries have been sanctioned or rebuked over their handling of this case.

Is MFF perfect? No. Are there lessons here for traders and firms about compliance and regulatory engagement? Absolutely. But the legal verdict is unambiguous.

MyForexFunds was wrongfully shut down. The regulators made critical misrepresentations. And now, slowly but surely, the firm is rebuilding.