Prop firm Funded Engineer responds to fraud allegations
In the wake of FPFX Technologies, LLC’s (FPFX Tech) decision to terminate its licensing agreement with Funded Engineer—a move detailed in a prior article citing allegations of fraudulent activities—Funded Engineer has issued a series of updates addressing the situation.
The firm was disappointed over the abrupt termination and the subsequent negative public relations campaign launched by FPFX Tech, pointing out that this was done without warning or an opportunity for dialogue.
Funded Engineer said it was surprised and concerned over how their services were ended and how they were removed from all past communications by FPFX Tech. The firm criticized the lack of communication prior to the action and the negative PR campaign that followed, adding that they were not approached for comment on the allegations.
Regarding the allegations, Funded Engineer stated that the matter has become a legal case, limiting their ability to share further details publicly. However, the firm assured its community that it is treating the situation with the utmost seriousness.
Despite these challenges, Funded Engineer said it’s committed to resolving the matter and restoring its business operations. The firm has asked for patience from its clients and stakeholders as it works to bounce back from this setback.
In a follow-up update, Funded Engineer assured its community that efforts to restore services are on track, expecting to be operational by Tuesday, after a day reserved for testing.
The firm has also addressed concerns regarding account balances and compensations, floating profits and losses, and the broader implications of the allegations made by FPFX Tech. Funded Engineer highlighted the complexity of migrating over 40,000 accounts but reassured that it is working to ensure accuracy in the process.
Funded Engineer informed its clients about the suspension of MT4 and MT5 services for all prop firms by Purple Trading, noting that this change affects the entire prop firm community. The firm has already obtained licenses to continue offering MT5 services to clients outside the USA and is exploring solutions for USA-based clients in light of upcoming industry-wide changes.
Earlier this 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.
