My Forex Funds filed a motion requesting a modification of the statutory restraining order. Reviewing My Forex Funds records, it was noticed that there were two pre-authorized payments:
- One for $27,000,000 CAD
- Another for $4,500,000 CAD
Also, both were flagged by the CFTC.
As the regulatory challenges of My Forex Funds persist, new aspects of its legal defense strategy have surfaced. Legal representatives for the now-suspended company argue that the CFTC has inaccurately portrayed transfers to and from the defendants’ bank accounts prior to the statutory restraining order (SRO). Specifically, they assert that the CFTC misrepresented a $31.55 million CAD transfer from Traders Global to Mr. Kazmi. This was actually directed to the Canadian tax authorities.
My Forex Funds New Motion Filed
According to My Forex Funds, their bank records indicate two pre-authorized payments of $4,500,000 CAD and $27,000,000 CAD. These were the amounts CFTC linked to “TXINS” and “TXBAL,” commonly used bank codes for Canadian tax payments.
These claims against the CFTC were presented in a motion filed by My Forex Funds in a New Jersey court on Wednesday. They responded to various allegations made by the US commodities regulator and sought modifications to the SRO.
In the court documents obtained by Finance Magnates, lawyers representing New Jersey-based Traders Global Group Inc., Canada’s Traders Global Group Inc., and Murtuza Kazmi questioned the CFTC’s actions. Traders Global Group operated under the name My Forex Funds. The CFTC initiated a lawsuit against these entities on August 29, resulting in the freezing of their assets and allegations of fraud against Kazmi. Anthony Sodono, III, Esq., was appointed as the temporary receiver. In response, My Forex Funds asserted that it had “never defrauded its traders.”
The latest motion by My Forex Funds specifically scrutinized the SRO, which led to the temporary platform shutdown. According to the motion, US courts have rarely ordered the closure of a business and the freezing of personal assets, including those of the Principal, for alleged regulatory violations.
The CFTC alleges that My Forex Funds generated at least $310 million in fees from its proprietary trading business. They attracted more than 135,000 customers since November 2021.
Conclusion
The motion concluded by stating, “The CFTC can obtain a court order in secret to shut down your entire business and have someone seize not only your business’s assets but also your personal assets before you ever know a complaint has been filed against you. That is what happened here, and the CFTC would have this Court believe that all of this is completely constitutional. It is not.”
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