A U.S. federal judge has dismissed the Commodity Futures
Trading Commission’s (CFTC) complaint against Traders Global Group Inc., the
parent company of My Forex Funds, with prejudice. The court also approved a
sanctions motion against the regulator.
The sanctions result from a
recommendation by Special Master Jose L. Linares, who urged the court to
dismiss the case with prejudice and impose penalties on the CFTC. He stated the
agency misled the court in its enforcement action against Traders Global.
Linares noted that the CFTC had made errors in a sworn
declaration and took steps to obfuscate. The court redacted the names of those
responsible, but prior filings indicate involvement of CFTC’s lead attorney
Ashley Burden and investigator Matthew Edelstein.
Court Orders CFTC to Pay Fees
In an order signed on May 13, 2025, Judge Edward S. Kiel
ruled in favor of the defendants, directing the CFTC to pay legal fees related
to the sanctions motion. The CFTC’s separate motion to dismiss was denied as
moot.
The defendants have been instructed to submit an affidavit
outlining their fees and costs, following the court’s schedule.
CFTC Places Staff on Administrative Leave
The CFTC
placed four lawyers and one investigator on administrative leave due to
allegations of misconduct related to the fraud case against Traders Global
Group Inc. The regulator cited potential violations of laws, government ethics,
and professional conduct rules.
Investigations are ongoing, but the agency did not confirm
the number of staff involved or specifically mention My Forex Funds. A
recommendation has also been filed following a review of allegations of
misconduct, including false statements to the court. These actions are under
the leadership of Acting Chair Caroline Pham.
A U.S. federal judge has dismissed the Commodity Futures
Trading Commission’s (CFTC) complaint against Traders Global Group Inc., the
parent company of My Forex Funds, with prejudice. The court also approved a
sanctions motion against the regulator.
The sanctions result from a
recommendation by Special Master Jose L. Linares, who urged the court to
dismiss the case with prejudice and impose penalties on the CFTC. He stated the
agency misled the court in its enforcement action against Traders Global.
Linares noted that the CFTC had made errors in a sworn
declaration and took steps to obfuscate. The court redacted the names of those
responsible, but prior filings indicate involvement of CFTC’s lead attorney
Ashley Burden and investigator Matthew Edelstein.
Court Orders CFTC to Pay Fees
In an order signed on May 13, 2025, Judge Edward S. Kiel
ruled in favor of the defendants, directing the CFTC to pay legal fees related
to the sanctions motion. The CFTC’s separate motion to dismiss was denied as
moot.
The defendants have been instructed to submit an affidavit
outlining their fees and costs, following the court’s schedule.
CFTC Places Staff on Administrative Leave
The CFTC
placed four lawyers and one investigator on administrative leave due to
allegations of misconduct related to the fraud case against Traders Global
Group Inc. The regulator cited potential violations of laws, government ethics,
and professional conduct rules.
Investigations are ongoing, but the agency did not confirm
the number of staff involved or specifically mention My Forex Funds. A
recommendation has also been filed following a review of allegations of
misconduct, including false statements to the court. These actions are under
the leadership of Acting Chair Caroline Pham.
This post is originally published on FINANCEMAGNATES.
