FPFX Terminates License of Prop Trading Firm Funded Engineer Due to Suspected Fraudulent Activities

FPFX Technologies, headquartered in Boca Raton, Florida, has announced the termination of its partnership with Funded Engineer, a Dubai-based prop trading firm operating under the website fundedengineer.com. This decision comes following the discovery of potential fraudulent activities aimed at deceiving FPFX Tech and misrepresenting payout figures to the public.

After conducting a routine audit of Funded Engineer's operations, FPFX Tech uncovered what it believes to be a scheme spanning several months. The audit revealed instances of creating fake trading accounts, circumventing AML/KYC procedures, engaging in wash trading, and fabricating payout data to exaggerate payment activity figures. These actions were apparently intended to defraud FPFX Tech and attract more customers to Funded Engineer's prop firm.

This development marks the second instance in as many days where a tech provider in the trading sector has severed ties with a prop trading firm client. Recently, ForexInventory reported exclusively that leading trading platform provider MetaQuotes terminated the MT4/MT5 platform licenses granted to True Forex Funds, a prop trading firm based in Hungary.

FPFX's allegations against Funded Engineer include:

1. Creation of Fake Accounts: The audit revealed that Funded Engineer manually created apparent fake users in the admin portal, granting them funded accounts without any payment history or billing details. This practice contradicts the prop firm's usual procedure, which requires traders to complete a challenge before receiving funded accounts.

2. Bypassing AML/KYC Procedures: Despite the requirement for AML/KYC checks before granting funded accounts, Funded Engineer allegedly bypassed these procedures by manually approving individuals for funded accounts.

3. Engaging in Wash Trading: Funded Engineer personnel purportedly conducted simulated trading activities solely to generate profits in the account. If unsuccessful, they would create new accounts and repeat the process, leading to inflated payout statistics.

4. Fictitious Payouts: FPFX's audit suggests that Funded Engineer never paid out any funds on these fictitious accounts. Instead, payouts were allegedly approved in the system and falsely represented as completed transactions via crypto wallets and global payroll servicing companies.
   

FPFX Tech intends to file complaints with regulatory authorities and notify relevant vendors with independent AML/KYC obligations.

FPFX Technologies, LLC, serves the prop trading industry, supporting over 140 prop firms and over 2 million unique traders. Its Prop Trading Tech Kit provides end-to-end automation tailored to the needs of proprietary trading/funded account firms.