This week, FPFX, a trading solution technology platform, terminated Funded Engineer’s license. This termination brings an end to the company’s partnership with Funded Program – a UAE-based prop firm. FPFX terminated the prop firm’s license after an internal audit and comprehensive evaluation. As per FPFX, the Funded Engineer followed several unethical practices to deceive the company and falsify payout figures.
Update July 15: Funded Engineer Closes Down – Prop Firm Files For Bankruptcy
After multiple efforts to strategically restructure the prop firm, Funded Engineer on July 15, 2024, declared a permanent closure to all client accounts, services, and operations. Funded Engineer’s social media handles also released an official statement – highlighting the prop firm’s decision to declare bankruptcy. Head to the company’s official website for an updated announcement on Funded Engineer shutting down permanently. The update reads:
“It is with deep regret and a heavy heart that we announce the permanent closure of Funded Engineer. Despite our extensive efforts to improve our financial situation, we have been unable to overcome the challenges we faced, necessitating the cessation of all operations effective immediately.”
Further highlighting the next steps to file for Funded Engineer’s bankruptcy, the update states:
“As part of this closure, Funded Engineer will be filing for bankruptcy.” The company also goes on to state that they tried multiple avenues to restore the prop firm’s financial stability. Unfortunately, all their efforts failed – resulting in a Funded Engineer’s permanent prop firm shut down.
Latest Updates On Funded Engineer Payouts
After Funded Engineer closed down forex funding services, many clients are concerned about their pending payouts. While the prop firm only shared a cryptic update on these payouts, these processes will most likely be managed under regular bankruptcy procedures. Notably, traders may need to wait for several years to receive their payouts. In terms of Funded Engineer’s official statements, the prop firm only mentioned:
“This decision was not made lightly, and we understand the significant impact it will have on our clients, partners, and employees. We are committed to managing this process as smoothly as possible and will be working closely with our legal and financial advisors to address all outstanding matters.”
Funded Engineer Goes Down
On Wednesday, February 9th, FPX Technologies, LLC announced the Funded Engineer’s termination, ending their agreement and partnership.
In an official statement, Justin Hertzberg, CEO of FPFX Technologies, stated:
“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.”
Hertzberg further argued the significance of reputable prop firms, ethical practices, and regulatory compliances to avoid such unexpected incidents.
Latest Funded Engineer News
While Funded Engineer has not responded to these allegations yet, the prop firm released an official tweet – highlighting the launch of its own trading software. The tweet stated:
“Hello everyone, Thank you for your patience with us during this troublesome time. As you know, we were already working with our own technology, and at the end of our contract with FPFX we were going to migrate over (this was going to occur in a few short months).”
The tweet further goes on to state that Funded Engineer’s new trading technology may take a few weeks for final release. In the meantime, the prop firm has disabled all accounts and trading activities. Additionally, Funded Engineer is promising a surprise for all the traders – after the company’s return.
On February 9, another tweet followed the Funded Engineer’s official statement. This tweet goes on to state that Funded Engineer may potentially restore its operations in the next week. Additionally, the prop firm is actively looking for solutions to manage balance & compensation, floating profits, and new brokerage partnerships.
The tweet highlights the complexities involved in migrating over 40,000 accounts and how Funded Engineer is managing the process efficiently.
The latest statement also reveals that Purple Trading, Funded Engineer’s official broker, will terminate MT4 and MT5 services for the prop firm. Funded Engineer claims to have secured MetaQuotes and Forex licenses to continue its services – except in the United States.
With these updates in place, Funded Engineer will discontinue all its services for the US clients. While the prop firm may partner with Blueberry or Think Markets in future, it may not resume its operations in the USA anytime soon.
Regarding FPFX accusations, the prop firm refrained from disclosing any details publically – primarily due to legal complexities.
Funded Engineer Account Migration Updates
On February 11, Funded Engineer released another statement regarding account migration. The prop firm will reset all active challenge accounts to the initial account balance. This update only impacts Phase 1 and Phase 2 challenge accounts that are in drawdown. Plus, all funded accounts will receive an additional 1% drawdown. Accounts with at least one active trade in February are eligible for resetting and offered drawdown.
FPFX Funded Engineer Fallout Explained
Based in Boca Raton, Florida, FPFX Technologies suspended Funded Engineer’s license after a periodic internal audit. The audit revealed unethical business activities and a scheme designed to defraud FPFX Tech. According to FPFX Tech, the alleged fraud scheme included:
- Fake Trading Accounts
- Wash Trading
- Misrepresented Payouts
- Unethically bypassed AML/KYC
FPFX believes Funded Engineer pursued these activities to increase their payments and attract potential forex traders.
The audit also revealed that Funded Engineer manually created fake trading accounts. These accounts received instant funding without passing the compulsory 1-step or 2-step prop firm evaluation. Plus, these accounts did not have a relevant billing or payment history. To approve the fake funded accounts, Funded Engineer allegedly bypassed AML/KYC through the admin panel.
As per FPFX’s audit, Funded Engineer’s team leveraged the live trading accounts to generate a profit, increase payout statistics, and defraud FPFX Technologies. Even after approving the payouts, none of the new fake accounts received any payments. Instead, the prop firm falsified these payments through cryptocurrency wallets – with no supporting blockchain transactions.FPFX further believes Funded Engineer misrepresented a fictitious payout of over $2 Million dollars. In fact, Tristian Talbot, CEO Funded Engineer, even posted this payout on his X account.
FPFX Contagion In The Prop Firm Industry
FPFX has over 50 years in the brokerage industry, providing trading solutions to many “white-label” prop firms. With these recent events, other smaller prop firms may shut down or move their services away from FPFX.
Further Legal Actions From FPFX Technologies
After these revelations, FPFX Technologies may take legal action and file complaints with regulatory authorities. Additionally, FPFX intends to protect other trading platforms, vendors, and third-party service providers from Funded Engineer’s irregulated practices.
Implications Of Funded Engineer’s Shutdown On The Prop Firm Industry
The contractual termination between FPFX and Funded Engineer raises shifting dynamics in the prop trading industry. This is the second partnership termination event between a prop firm and a forex broker. In January, MetaQuotes shut down True Forex Funds – forcing the prop firm to terminate its services.
While these repeated incidents are unfortunate, traders must partner with trusted and legitimate prop firms to avoid financial losses. Select an industry-leading and reputable prop firm with multiple liquidity providers.
