Key Insights
- Dubai-based prop trading firm Funded Engineer shuts down and plans to file for bankruptcy.
- The company faced earlier challenges, including fraud allegations and loss of technology license from FPFX.
DUBAI (MarketsXplora) – Funded Engineer, a Dubai-based proprietary trading firm, announced its permanent closure on Monday and plans to file for bankruptcy, marking another casualty in the troubled prop trading industry.
The company’s website has been replaced with an “Announcement of Ceasing Operations” notice, stating that it was unable to overcome financial challenges despite extensive efforts to improve its situation.
— Funded Engineer (@fundedengineer) July 15, 2024
Funded Engineer Closes Doors After Fraud Allegations
Funded Engineer’s troubles began in February when its then-technology supplier, FPFX, terminated their license agreement over alleged fraud. This followed the loss of the firm’s brokerage partner amid a broader crackdown on the prop trading industry by MetaQuotes.
The company was subsequently suspended by prop firm comparison site Propfirmmatch, citing compromised funded accounts.
In its closure announcement, Funded Engineer said it had explored various avenues to stabilize its finances, including strategic restructuring, cost-cutting measures, and seeking additional investment, but these efforts proved unsuccessful.
“We deeply appreciate the trust and support you have shown us over the lifespan of Funded Engineer,” the company stated in its notice to clients and partners.
The closure of Funded Engineer follows a string of shutdowns in the prop trading sector, despite growing demand. Other firms that have recently ceased operations include True Forex Funds, Stocknet Institute, SurgeTrader, and Skilled Funded Trader.
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