Funded Engineer, a troubled prop trading firm, announced today (Monday) the “permanent closure” of its operations, effective immediately, and the decision to file for bankruptcy on its official social media channels.
The company’s website also displays a notice of the “announcement of ceasing operations” and no longer offers clients the option to access their accounts.
Bankruptcy Filing to Follow
“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,” the announcement stated.
“As part of this closure, Funded Engineer will be filing for bankruptcy.”
The company further pointed out that it “explored every possible avenue to stabilise [its] financial standing, including strategic restructuring, cost-cutting measures, and seeking additional investment” over the past months but failed.
Funded Engineer did not specify anything about the pending payouts. As it will file for bankruptcy, these processes will likely be handled under the bankruptcy procedure, which might take years to settle the claims. It will also be interesting to see how the bankruptcy administrators would consider the gains from prop trading activities, as they are not gains from real market trading.
“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.”
Another Prop Trading Firm Shuts Down
Funded Engineer, based in Dubai, began experiencing problems last February when its former technology partner, FPFX Technologies, revoked its licence with allegations of fraud. That followed the prop trading platform losing its brokerage partner, which resulted from a wider crackdown by MetaQuotes on the prop trading industry.
Although the Funded Engineer restored operations on the surface, the latest closure shows the internal gaps.
Meanwhile, despite the boom in prop trading demand, many other brands in the space, including True Forex Funds, Stocknet Institute, SurgeTrader, and Skilled Funded Trader, have shuttered their operations.
Funded Engineer, a troubled prop trading firm, announced today (Monday) the “permanent closure” of its operations, effective immediately, and the decision to file for bankruptcy on its official social media channels.
The company’s website also displays a notice of the “announcement of ceasing operations” and no longer offers clients the option to access their accounts.
Bankruptcy Filing to Follow
“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,” the announcement stated.
“As part of this closure, Funded Engineer will be filing for bankruptcy.”
The company further pointed out that it “explored every possible avenue to stabilise [its] financial standing, including strategic restructuring, cost-cutting measures, and seeking additional investment” over the past months but failed.
Funded Engineer did not specify anything about the pending payouts. As it will file for bankruptcy, these processes will likely be handled under the bankruptcy procedure, which might take years to settle the claims. It will also be interesting to see how the bankruptcy administrators would consider the gains from prop trading activities, as they are not gains from real market trading.
“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.”
Another Prop Trading Firm Shuts Down
Funded Engineer, based in Dubai, began experiencing problems last February when its former technology partner, FPFX Technologies, revoked its licence with allegations of fraud. That followed the prop trading platform losing its brokerage partner, which resulted from a wider crackdown by MetaQuotes on the prop trading industry.
Although the Funded Engineer restored operations on the surface, the latest closure shows the internal gaps.
Meanwhile, despite the boom in prop trading demand, many other brands in the space, including True Forex Funds, Stocknet Institute, SurgeTrader, and Skilled Funded Trader, have shuttered their operations.
This post is originally published on FINANCEMAGNATES.
