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Exclusive: My Forex Funds Claims CFTC “Mischaracterized” Its Tax Payments to Freeze Assets

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As My Forex Funds’s regulatory quagmire continues, new details of its legal line of defence emerge. The lawyers representing the now suspended company claim that the Commodity Futures Trading Commission (CFTC) has “recklessly mischaracterized transfers to and from Defendants’ bank accounts before the SRO [statutory restraining order] was entered.” Specifically, “the CFTC misrepresented that Traders Global transferred $31.55 million CAD to Mr. Kazmi, when in reality Traders Global transferred that money to the Canadian tax authorities.”

According to My Forex Funds, its bank records show two pre-authorized payments of $4,500,000 CAD and $27,000,000 CAD, which the CFTC flagged, with reference to “TXINS” and “TXBAL,” respectively. These are common bank codes used to designate tax payments to the Canadian government.

The claims came in a motion filed by the My Forex Funds yesterday (Wednesday) in the New Jersey court responding to several of the allegations brought against it by the US commodities regulator and seeking a modification of the SRO.

Finance Magnates approached the CFTC to know its arguments against the motion but did not receive any reply as of publishing time.

In the court filing, seen by Finance Magnates, the lawyers of the New Jersey-based Traders Global Group Inc., Canada’s Traders Global Group Inc., and Murtuza Kazmi, questioned the actions of the CFTC

. Traders Global Group operated as My Forex Funds.

The CFTC sued the defendants on August 29, freezing the assets of the two entries and also Kazmi with allegations of fraud. Since then, Anthony Sodono, III, Esq., was appointed as the temporary receiver. In a response, My Forex Funds said that it “never defrauded its traders.

The latest motion by My Forex Funds specifically questioned the STO, which led to the temporary shutdown of the platform. According to the motion, none of the US courts have ever ordered the shutting down of a business and froze the assets, even the personal assets of the Principal, for alleged regulatory infractions.

According to the CFTC, My Forex Funds generated at least $310 million in fees from its prop trading business. The platform has had more than 135,000 customers signed up since November 2021.

“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.”, the motion stated.

As My Forex Funds’s regulatory quagmire continues, new details of its legal line of defence emerge. The lawyers representing the now suspended company claim that the Commodity Futures Trading Commission (CFTC) has “recklessly mischaracterized transfers to and from Defendants’ bank accounts before the SRO [statutory restraining order] was entered.” Specifically, “the CFTC misrepresented that Traders Global transferred $31.55 million CAD to Mr. Kazmi, when in reality Traders Global transferred that money to the Canadian tax authorities.”

According to My Forex Funds, its bank records show two pre-authorized payments of $4,500,000 CAD and $27,000,000 CAD, which the CFTC flagged, with reference to “TXINS” and “TXBAL,” respectively. These are common bank codes used to designate tax payments to the Canadian government.

The claims came in a motion filed by the My Forex Funds yesterday (Wednesday) in the New Jersey court responding to several of the allegations brought against it by the US commodities regulator and seeking a modification of the SRO.

Finance Magnates approached the CFTC to know its arguments against the motion but did not receive any reply as of publishing time.

In the court filing, seen by Finance Magnates, the lawyers of the New Jersey-based Traders Global Group Inc., Canada’s Traders Global Group Inc., and Murtuza Kazmi, questioned the actions of the CFTC

. Traders Global Group operated as My Forex Funds.

The CFTC sued the defendants on August 29, freezing the assets of the two entries and also Kazmi with allegations of fraud. Since then, Anthony Sodono, III, Esq., was appointed as the temporary receiver. In a response, My Forex Funds said that it “never defrauded its traders.

The latest motion by My Forex Funds specifically questioned the STO, which led to the temporary shutdown of the platform. According to the motion, none of the US courts have ever ordered the shutting down of a business and froze the assets, even the personal assets of the Principal, for alleged regulatory infractions.

According to the CFTC, My Forex Funds generated at least $310 million in fees from its prop trading business. The platform has had more than 135,000 customers signed up since November 2021.

“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.”, the motion stated.

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