The United States Commodity Futures Trading Commission (CFTC) shut down the operations of My Forex Funds (Traders Global Group Inc.) for the following reasons
1: They lied to customers that they were trading live capital against real liquidity providers. The truth was that traders were actally trading simulated capital and MFF was trading against them as counterparty, which created a conflict of interest. it was in their best interest to see you lose.
Its important to note that after MFF went down, many prop firms immediately corrected the information on their websites to indicate that traders who pass their challenge will be trading simulated capital and not live capital.
2: The payouts to successful traders were not a proceed of authentic trading wins (since traders were not trading against a live market but against a demo market) instead just like a ponzi scheme the payouts were from challenge fees received from new traders.
To generate more money, MFF used unethical methods like creating difficult trading rules which brought about "failure by design" to its traders. Unrealistic rules such as drawdown limit were enforced to the detriment of traders.
MFF also intentionally executed customer orders at inferior prices using the excuse of slippage. They did this with the help of s special software.
The owners of MFF used proceeds of this raud to purchase luxury cars and homes all over the world.
I could go on and on but see the authentic CFTC court document used to close down MFF here: https://www.cftc.gov/media/9196/enftradersglobalgroupcomplaint082923/download
