Key Insights
- FPFX Technologies terminates license of Dubai prop trading firm Funded Engineer
- Accuses Funded Engineer of fake accounts, wash trades, fabricating $2M in payouts
- Scheme aimed to defraud FPFX and misrepresent payment data to attract customers
BOCA RATON, Fla. (MarketsXplora) – FPFX Technologies LLC has terminated the license of Dubai-based proprietary trading firm Funded Engineer for allegedly creating fake trading accounts to falsely inflate payout figures, the Florida prop trading technology company said on Thursday.
FPFX said a routine audit found Funded Engineer manually overriding anti-money laundering checks to open unverified accounts that were then used to conduct simulated wash trading aimed at generating fictional profits and payouts.
The scheme, which FPFX claims led Funded Engineer to overstate payouts by more than $2 million, was allegedly designed to defraud FPFX and mislead prospective traders about Funded Engineer’s true performance as a way to attract more customers.
Funded Engineer did not immediately respond to a request for comment. MarketsXplora could not independently verify the allegations.
“It is disheartening that a firm like Funded Engineer would engage in activity that would appear to defraud FPFX Tech and, more importantly, to misrepresent material facts to unwitting traders,” Hertzberg said.
The move marked the industry’s second license suspension this week after trading platform provider MetaQuotes terminated the MT4/MT5 licenses of Hungary-based True Forex Funds on Wednesday.
FPFX added it planned to contact authorities about Funded Engineer, which promotes itself as a Dubai and EU-regulated prop firm allowing traders to use its capital to place trades.
Prop, or proprietary, trading firms offer funding to facilitate trades by individuals or teams and share profits in return. Many sprang up selling online courses during COVID-19 lockdowns.
Regulators warn the sector is plagued by “fake gurus” selling get-rich-quick dreams alongside legitimate educators and prop firms enabling traders to leverage shared capital and data analytics.
FPFX supports over 140 prop trading companies with software handling functions like account openings, risk management, and payments in a sector with over $1 trillion now invested, it says.
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