Funded FPFX Tech terminates the Funded Engineer license amid an alleged discovery of a fraudulent scheme. Read the details.
Funded FPFX Tech terminates the Funded Engineer license amid an alleged discovery of a fraudulent scheme. Read the details.
FPFX Tech terminates the Funded Engineer license amid an alleged discovery of a fraudulent scheme. In a recent audit, FPFX Tech identified what it believes to be a months-long elaborate scheme conducted by a Funded Engineer.
The scheme involved the creation of fake trading accounts, bypassing AML/KYC safeguards, engaging in wash trading, and generating fictitious payouts to inflate payment activity figures. FPFX Tech asserts that the objective of the scheme was to deceive both FPFX Tech and the public by representing payout figures higher than the actual amounts, with the intention of attracting more customers to their prop trading firm.
This termination by FPFX Tech follows a recent trend in the trading sector, as MetaQuotes terminated the MT4/MT5 platform licenses of True Forex Funds, a prop trading firm, just a day prior.
During the audit, FPFX Tech observed that the Funded Engineer manually created fake users in the technology’s admin portal. Contrary to Funded Engineer’s usual practice of requiring traders to complete challenges and AML/KYC checks, they granted funded accounts to users lacking payment history and billing details.
The audit revealed that Funded Engineer personnel overrode the AML/KYC system to approve these individuals for funded accounts. Subsequently, they engaged in simulated trading activities solely to achieve profits in the accounts. FPFX Tech alleges that these activities served no purpose other than to defraud FPFX Tech and inflate the Funded Engineer’s payout statistics.
Also, according to FPFX Tech’s audit, Funded Engineer appears to have overstated its payouts by over $2 million. FPFX Tech plans to file complaints with regulatory authorities and notify other vendors with AML/KYC obligations. Justin Hertzberg, CEO of FPFX Tech, expressed disappointment in Funded Engineer’s actions and emphasized the importance of ethical practices in the prop trading industry. FPFX Technologies, with over 140 prop firms and 2 million unique traders, plans to continue ensuring that licensees of its technology adhere to ethical standards in the industry.
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