The My Forex Funds saga has taken a dramatic turn, as four lawyers and one investigator from the U.S. Commodity Futures Trading Commission (CFTC) have been placed on administrative leave over allegations of legal and ethical misconduct. According to reports, the regulator is now facing an internal probe into potentially willful misconduct—including allegedly making false statements to the court.
Acting Chair Caroline Pham, who has voiced concerns about the case since the beginning, previously flagged serious issues with the agency’s handling. She criticized the original sanctions order as being based on a mischaracterization of tax payments, and raised broader concerns about the CFTC’s Division of Enforcement.
The fallout follows a sanctions motion filed by My Forex Funds and its CEO, Murtuza Kazmi, accusing the CFTC of misrepresenting facts. During an evidentiary hearing, the Commission’s lead attorney admitted to being “careless and sloppy” in the investigation. Although the CFTC has insisted that any errors were “limited and inadvertent,” the damage to its credibility may be harder to contain.
This regulatory drama is unfolding against a politically charged backdrop: Caroline Pham is currently leading the agency, but Brian Quintenz is expected to take over under President Trump’s second term.
For the prop trading industry, the case now raises deeper questions—not just about compliance, but about regulatory accountability. With confidence in the CFTC shaken, calls for transparency may now extend beyond prop firms to the regulators themselves.
As the investigation into the CFTC continues, one question looms large: Could this pave the way for a My Forex Funds comeback—or even trigger a rethinking of how prop firms are regulated in the U.S.?
Stay tuned — PropInsider will be following every twist.
The My Forex Funds case has taken a surprising turn as the CFTC now finds itself under investigation. Four attorneys and an investigator from the U.S. regulator have been placed on administrative leave amid allegations of legal and ethical misconduct
