FPFX Technologies, a proprietary trading technology company with its headquarters in Boca Raton, Florida, has announced that its client, Funded Engineer, a proprietary trading firm situated in Dubai, has had its license revoked. An alleged scheme to mislead FPFX Tech and give consumers false payout figures prompted this action.

According to FPFX Tech, a routine audit of Funded Engineer's business operations revealed what it believes to be a multi-month fraud. Funded Engineer allegedly engaged in wash trading, created phony trading accounts, got around AML/KYC regulations, and made up payouts to inflate its payment activity. The corporation stated that the scheme's goal was to mislead the public and FPFX Tech by inflating reward figures beyond reality in order to draw more customers to their in-house trading business.

This move by FPFX marks the second time in as many days that a trading technology supplier has broken off relations with one of its proprietary trading business clients True Forex Funds, a proprietary trading company with headquarters in Hungary, had its MT4 and MT5 platform licenses revoked by MetaQuotes, a prominent provider of trading platforms.

FPFX has accused the Funded Engineer of a number of things, including:

Phishing user accounts: During the audit, Funded Engineer appeared to have manually created what appeared to be fake users on the admin side of the technology, according to FPFX Tech. These users were given financed accounts right away, even though they had no billing information or payment history. This runs counter to the prop company model of Funded Engineer, which requires all traders to clear a challenge in order to receive funding for their accounts.

Getting Around AML/KYC: Checks Before being granted a funded account, Funded Engineer mandates that all of its traders go through AML/KYC screenings. This protects the broker partner and the prop business from hiring traders using fictitious identities or individuals who wouldn't be able to create a brokerage account directly. Nevertheless, FPFX claims that in order to accept these "individuals" for funded accounts, the Funded Engineer manually got around the AML/KYC system.

Trade Simulation: It is said that employees of Funded Engineers entered the client terminal and engaged in simulated trading with the exclusive intent of making money on the account. Funded Engineer would just create a new account and start over if the trading activity was unsuccessful. FPFX Tech believes that the only intention behind this trading activity was to deceive the company and boost the Funded Engineer's payout figures.

Fake Payouts: Based on the audit conducted by FPFX Tech, it appears that the Funded Engineer never really paid anything on these false accounts. Rather, it authorized the payouts through the system and pretended to send them through cryptocurrency wallets and international payroll processing firms. Nevertheless, a review of blockchain activity revealed no transactions that matched these wallets.

According to the audit, Funded Engineer appears to have overstated its rewards by almost $2 million. One of its creators, Tristian Talbot, then made this public on his X account, Trader T.

"It's disconcerting that a company like Funded Engineer would partake in actions that seem to swindle FPFX Tech, a key player in Funded Engineer's ascension in the prop space," said FPFX Tech CEO Justin Hertzberg in expressing his dismay. More importantly, it worries me that they would misrepresent important facts to gullible traders who are only looking for a way to make a trade. In order for the prop trading sector to survive and grow, it is imperative that decent players and moral behavior come first. We promise to keep working to make sure that people who license our technology act responsibly.

FPFX Tech has said that it will file complaints with regulatory agencies and notify other connected vendors that are responsible for their own AML/KYC.