FPFX Tech Terminates Funded Engineer for Fraudulent Actions

Technologies, a prominent player based in Boca Raton, Florida, has taken decisive action against its client, Funded Engineer. The Dubai-based trading firm, operating through fundedengineer.com, faced termination of its license following allegations of engaging in a fraudulent scheme aimed at deceiving both FPFX Tech and its consumer base.

The decision was rooted in findings from a periodic audit conducted by FPFX Technologies. The examination brought to light a series of deceptive practices allegedly carried out by the Funded Engineer over several months. According to FPFX Tech, the Funded Engineer was involved in creating bogus trading accounts, circumventing Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols, engaging in wash trading, and fabricating payout figures. The primary motive behind these actions, as FPFX Tech suggests, was to inflate its financial activity and lure more customers under pretenses.

This incident is not an isolated case in the prop trading sector. Only a day earlier, MetaQuotes, a leading trading platform provider, had terminated the MT4/MT5 platform licenses of True Forex Funds, a Hungary-based prop trading firm. The action FPFX took against the Funded Engineer represents a similar stance in upholding integrity and trust within the industry.

The Alleged Fraudulent Practices of Funded Engineer

FPFX Technologies' audit unearthed several dubious activities conducted by the Funded Engineer:

Fake Accounts Creation: The audit revealed that the Funded Engineer manually set up what seemed to be fictitious user accounts through the admin portal. These accounts lacked payment history or billing details yet were directly allocated funded accounts, contradicting the company's standard operating procedure.

Bypassing AML/KYC Checks: The Funded Engineer is alleged to have overridden AML/KYC checks, crucial for ensuring that traders meet the necessary standards before receiving funded accounts. FPFX Tech claims this move was to facilitate the approval of these questionable accounts.

Engagement in Wash Trading: It appears that Funded Engineer staff logged into client terminals to trade in a simulated environment, aiming to falsely show profitability. This activity, according to FPFX Tech, had no genuine purpose other than to deceive and inflate the firm's payout statistics.

Fabrication of Payouts: The investigation by FPFX Tech suggests that the Funded Engineer never actually paid out on these fake accounts. Instead, they showed approvals in their system and simulated payments through cryptocurrency wallets and payroll services. However, blockchain reviews found no corresponding transactions.

The audit revealed a $2 million overstatement of payouts, which one of Funded Engineer's founders had promoted on social media.

FPFX Tech's Response and Future Actions

Justin Hertzberg, CEO of FPFX Tech, expressed disappointment over these revelations, emphasizing the need for ethical practices in the prop trading industry. He underscored FPFX Tech's role in Funded Engineer's initial success and expressed concern over the misleading of traders seeking genuine opportunities.

FPFX Tech plans to file complaints with regulatory authorities and inform other vendors who may be affected by these findings, especially those with independent AML/KYC obligations.

About FPFX Technologies, LLC

FPFX Technologies stands as a vital technology provider in the prop trading domain. It serves over 140 prop businesses and over 2 million individual traders. Its services provide a variety of functions such as bespoke prop trading strategies, automated account creation, risk monitoring, and more, all of which are designed to help proprietary trading and funded account organizations operate more effectively.

The Broader Impact on the Prop Trading Industry

The emerging crisis between FPFX Technologies and Funded Engineer serves as a harsh reminder of the problems that the prop trading business faces. It emphasizes the significance of thorough audits, adhering to AML/KYC standards, and maintaining operational openness. This occurrence will most likely cause other businesses in the industry to reconsider their policies and increase their vigilance against possible fraud.

As the industry continues to evolve, the role of technology providers like FPFX Technologies becomes increasingly critical. They not only offer the necessary tools and platforms for trading firms but also act as gatekeepers to ensure ethical and legal compliance. FPFX's action against the Funded Engineer demonstrates its commitment to upholding industry standards and protecting the interests of its customers and the trading community as a whole.

This case also serves as a warning tale for traders and businesses alike, emphasizing the necessity of due research and dealing with respectable and ethical partners. As the prop trading environment expands and more players enter the market, preserving trust and integrity becomes critical to the industry's long-term viability and profitability.

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