BREAKING: FPFX Cuts Ties with the Funded Engineer Over Fraud Scheme
FPFX Technologies, LLC, a prop trading tech provider, terminated the license of a prop trading firm, the Funded Engineer. This decision follows a thorough evaluation by the firm leadership that signaled an apparent scheme to defraud FPFX Tech and misrepresent payout figures to consumers.
FPFX Technologies, a Florida-based company, stands as a titan in the prop trading world, supporting over 140 prop firms and aiding more than 2 million unique traders globally. Its technology suite offers comprehensive solutions for the operation and administration of prop trading firms – from account creation to risk management.
On the other side of this controversy is Funded Engineer, a Dubai-based prop trading firm that had, until recently, benefited from FPFX technology and industry support.
Funded Engineer’s Response to Service Termination
The sequence of events unfolded with the Funded Engineer issuing public statements on February 7, 2024, about FPFX Technologies suddenly stopping their services.
The prop trading firm revealed that their dashboard provider had terminated services without prior warning or chance for discussion.
Thirty minutes after their first statement, the firm addressed their traders directly. The Funded Engineer expressed gratitude for their client’s patience. The firm also outlined immediate steps to migrate to its technology platform despite the temporary suspension of trading activities.
FPFX Technologies Sheds Light on Termination Reasons
Shortly after the Funded Engineer announcements, FPFX Technologies released a detailed press statement, shedding light on the true reasons behind the license termination.
The company disclosed findings from a periodic audit of Funded Engineer business activities. This audit allegedly revealed a months-long scheme involving creating fake trading accounts, bypassing AML/KYC safeguards, engaging in wash trading, and generating fictitious payouts.
According to FPFX, these actions were part of a deliberate strategy to inflate payment activity figures, misleading both FPFX Tech and the public. Read the FPFX official press release here:
FPFX Tech’s CEO Speaks Out
Justin Hertzberg, CEO of FPFX Tech, expressed disappointment over the actions of the Funded Engineer:
“It is disheartening that a firm like Funded Engineer would engage in activity that would appear to defraud FPFX Tech, which was instrumental in Funded Engineer’s rise within the prop space and, more importantly, to misrepresent material facts to unwitting traders simply looking for a trading opportunity (…)“ – said.
Fxprop Statement on Funded Engineer
In light of these developments, fxprop firmly condemns the actions of the Funded Engineer. Misleading clients and defrauding partners are wholly unacceptable behaviors that undermine the foundational principles of trust and transparency in the financial trading sector.
We strongly advise against trading with or associating with this prop firm, advocating for diligence and integrity in all trading activities. The prop trading community must hold itself to the highest standards to ensure the trust of traders and partners alike.
A Call for Ethical Standards
The fallout between FPFX Technologies and the Funded Engineer serves as a poignant reminder of the importance of ethical conduct, transparency, and rigorous adherence to regulatory standards within the financial industry.
As FPFX Technologies moves to file complaints with regulatory authorities as well as notify other related vendors who have their own independent AML/KYC obligations, the prop trading community remains vigilant, awaiting the repercussions of this incident.
