Funded Engineer to relaunch this week despite fraud allegations
Funded Engineer outlined the conditions under which accounts in drawdown would be reset or retained, alongside a straightforward refund process for those opting out.
In a remarkable turn of events, Funded Engineer, a prop trading firm recently embroiled in controversy, is poised for a significant comeback early this week after being dropped by technology provider, FPFX Tech, on grounds of fraud and wash trading.
Funded Engineer has announced a series of measures aimed at stabilizing its operations and regaining trader trust, with a tweet detailing their plans for account migration and enhancement of trader drawdown parameters.
Funded Engineer to reset drawdowns
According to the tweet, all active Challenge accounts in phases 1 and 2 currently in drawdown will see their balances reset to the original starting balance at the time of purchase. Additionally, all funded accounts will enjoy an added 1% drawdown flexibility, subject to having placed at least one trade in February.
Two days ago, Funded Engineer outlined the conditions under which accounts in drawdown would be reset or retained, alongside a straightforward refund process for those opting out. The firm reassured its traders of ongoing account migrations and compensation calculations, emphasizing full payouts for pending and upcoming withdrawals.
Despite the turbulence caused by the accusations from FPFX Tech and the subsequent operational challenges, Funded Engineer has maintained a stance of resilience and transparency.
The firm has openly addressed the gravity of the allegations, treating them with the seriousness they warrant while navigating the complexities of legal proceedings and operational restructuring.
Adding to its strategic recovery plan, Funded Engineer is ready to expand its brokerage options, having announced its readiness to integrate additional brokers such as ThinkMarkets and Blueberry if necessary.
As Funded Engineer gears up for its imminent relaunch, the trading community watches closely as it remains to be seen what will be the practical consequences of the lawsuit being levied by FPFX Tech.
FPFX Tech alleges “a months-long scheme”
Last week, retail prop trading tech provider FPFX Technologies, LLC (FPFX Tech), terminated its licensing agreement with the prop firm Funded Engineer following an internal audit.
The audit unveiled what the vendor alleges to be “a months-long scheme” by Funded Engineer to deceive both FPFX Tech and the public by inflating payout figures through illicit activities.
A day earlier, another prop trading firm called True Forex Funds announced a “temporary halt” to its services. The company said this move comes in the wake of MetaQuotes, the developer of the widely-used trading platforms MT4 and MT5, terminating True Forex Funds’ licenses.
This incident marks the second major disruption in the proprietary trading sector in recent months. It follows the shutdown of Canada’s My Forex Funds by US and Canadian regulators last September.