CFTC Charges “My Forex Funds” with Fraudulently Taking Over $300 Million From Customers Hoping to Be

The chance that MFF can wint court case are so (very) low. The damage is already there as assets are frozen. They are gone. Even they would win the harm of their reputation would need a lot of time to rebuilt. And if everyone stops buying new challenges and the profitable traders still are creating profits, MFF cannot payout and they will run of cash sooner or later.

The press release is short, here is the full 40 pages complaint attached.
 

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The complaint alleges Kazmi used proceeds from the fraud to purchase luxury homes and automobiles
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If he used proceeds to feed the poor would it still be a complaint?
If allegations are proven true, Mr Kazmi should enjoy his next
Government paid vacation at the nearest Federal prison.

Items purchased with ill-gotten gains is irrelevant.
 
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Specterx said:
Fascinating - of 24,000 “live” accounts, fewer than 100 were identified as consistently profitable and thus routed to an actual exchange (to avoid the bucket shop taking losses).

So there’s your daytrader success rate: roughly 1 in 250 or 0.4%.
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It is even worse, because out of this 24000 live accounts the passing rate to get to the funded account status were already like 3% or 4% only. So it would be like 4% of 0.4%, so much lower again.
 
TrAndy2022 said:
It is even worse, because out of this 24000 live accounts the passing rate to get to the funded account status were already like 3% or 4% only. So it would be like 4% of 0.4%, so much lower again.
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yeah it's actually way worse. the vast majority of those who manage to pass and advance to live accounts did so after blowing up multiple evals and finally hitting a lucky homerun.

so the % out of those who passed who actually did so as consistently profitable traders with a real edge is less than a third, and i'm being generous here.

so more accurate representation of the daytrader success rate is roughly (1/3) * (4%) * (0.4%) = 0.00005333333 or 0.005333333%

so approximately, around 1 out of 187 people make it as successful retail daytraders. that sounds about right based on what i see anecdotally.
 
Specterx said:
Fascinating - of 24,000 “live” accounts, fewer than 100 were identified as consistently profitable and thus routed to an actual exchange (to avoid the bucket shop taking losses).

So there’s your daytrader success rate: roughly 1 in 250 or 0.4%.
More...

0.4% profitable "live accounts" sounds about right -- imagine how low that % number would be if you look at the math figure on total consistently profitable live accounts VS how many challenges were paid for by all people (even those that never qualified for a live account by passing)

As the complaint noted, the Traders Global pitch has been successful, and more than 135,000 customers have signed up for their trading program since November 2021, paying at last $310 million in fees.

Imagine how many people failed the challenge the 1st time, then paid again & again and again trying to take addl challenges to try to pass and never passed--plus-- all the challnges per per person taken by people who did evenutually pass and then blew up and lost their their live account after being funded

 
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Specterx said:
Fascinating - of 24,000 “live” accounts, fewer than 100 were identified as consistently profitable and thus routed to an actual exchange (to avoid the bucket shop taking losses).

So there’s your daytrader success rate: roughly 1 in 250 or 0.4%.
More...

0.4% using THEIR rules. I think judging by the repeat competitors in live trading competitions I see, it's probably about 10% though.

But then again, if you extend that tenure time longer, the list gets progressively smaller.
 
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