THE GRAVEYARD
Prop firms come and go.
We keep the receipts.
Evidence-backed only. No defamation theatre, no unsupported accusations , just what happened, what the warning signs were, and what it cost the traders involved.
Interred
2 cases2020 – 2023
MyForexFunds
Shut down following US regulatory action
One of the largest forex evaluation firms of its era, MyForexFunds was shut down in September 2023 after the US CFTC filed a civil enforcement action. The case became the industry's defining lesson on the regulatory exposure of retail-funded evaluation models.
TIMELINE
- 2020 Founded and grew rapidly into one of the biggest evaluation firms by volume.
- 2022 Payout complaints and community friction grew as the firm scaled faster than its operations.
- Aug 2023 Announced it was halting certain activities and reviewing operations; trading on the platform was suspended.
- Sep 2023 US CFTC filed a civil enforcement action alleging unregistered commodity pool operation. The firm's website went offline.
- 2024 Related legal proceedings continued; the founder was arrested in Australia on extradition-related charges in 2024.
WARNING SIGNS
- Growth that outran operational capacity
- A rising volume of payout complaints in the months before shutdown
- Funded-account model structured around simulated trading with real money flowing in as fees
- Sudden platform suspensions ahead of the regulatory action
LESSONS
- Fees flowing in from retail traders while 'funded' accounts are simulated is the exact structure regulators scrutinise.
- Popularity is not safety. The biggest firm in the niche can still be the biggest target.
- Check a firm's legal entity, jurisdiction and any regulatory history before trusting volume as a signal.
SOURCES
CFTC press release (Sept 2023) ↗ · CFTC v. MyForexFunds enforcement filing ↗
2020 – 2024
True Forex Funds
Operations halted following UK and Belize regulatory action
True Forex Funds was a major forex evaluation firm that collapsed after the UK FCA took action over unregulated activity and Belize's regulator suspended its licence. The case shows what happens when a firm's legal structure and regulatory posture can't survive regulatory scrutiny.
TIMELINE
- 2020 Founded and scaled quickly into a top-tier evaluation brand by volume.
- Nov 2023 UK FCA froze assets and prohibited regulated activity over concerns about unregulated trading operations.
- Feb 2024 Belize regulator (CIMA) suspended the firm's licence, citing regulatory concerns.
- 2024 The firm announced it was shutting down; refund and payout claims moved to insolvency-type processes.
WARNING SIGNS
- Marketing heavily on 'regulated' positioning without a clear regulatory home for the evaluation business
- Payout delays and community complaints in the months before the FCA action
- Entity structure spread across jurisdictions with unclear accountability
- A sudden freeze on withdrawals ahead of the formal announcement
LESSONS
- When a firm advertises regulation, verify which regulator regulates what. Evaluation fees and 'funded' payouts are usually not regulated activity, that gap is where the risk lives.
- Withdrawal friction is a signal, not a rumour. Track it.
- Jurisdiction shopping is common in this industry. It is not itself fraud, but it is not protection either.
SOURCES
Entries are added only with verifiable evidence, regulatory filings, official announcements and primary sources. The Monster does not bury rumours. The Graveyard is growing; every tombstone is a lesson.