MPFunds, an affiliate of the proprietary trading firm Prop Firm Match, has ceased operations, citing regulatory hurdles and the unexpected loss of banking services. As a result, users of Prop Firm Match who participated in MPFunds’ trading program have been left in a state of uncertainty with no clear direction regarding potential compensation.
Prop Firm Match Offers Assistance to Affected Traders
In response to the closure, Prop Firm Match took to X to express its surprise, stating it had no prior knowledge of MPFunds’ decision to shut down. To help affected traders, Prop Firm Match is offering free challenge accounts to those who can provide proof of their involvement with MPFunds.
Regulatory and Banking Challenges Lead to MPFunds’ Demise
In an open letter to its clients, MPFunds CEO Dean Wong explained that changes in Singapore’s regulatory environment, combined with the sudden termination of banking services, forced the company to halt operations. Wong emphasized that despite providing all necessary legal documents and filing appeals, the firm’s bank abruptly cut off services without any explanation or room for negotiation.
“Due to stringent regulatory changes and enforcement in the region, our banking partner unilaterally ended all services without providing a reason,” Wong explained on the MPFunds website. “Even though we submitted all the required evidence and legal paperwork, our appeals to reinstate the account were rejected without further discussion.”
Uncertainty for MPFunds Traders
With no official word from MPFunds regarding compensation, traders with active accounts are left wondering what the future holds. Prop Firm Match has offered some consolation, allowing traders who submit proof of purchase to claim free challenge accounts based on the status of their MPFunds involvement.
The Collapse of MPFunds
Wong’s letter painted a picture of a company that, despite its initial success, was ultimately overwhelmed by external regulatory pressures and internal challenges. He also disclosed that MPFunds had recently faced a rise in suspicious trading activities, with a small group of traders reportedly exploiting the platform’s reward system.
“Additionally, we discovered an uptick in prohibited and suspicious activities by a minority of users, who collectively attempted to take advantage of our platform. Although most traders were unaffected, this small group jeopardized the integrity of our reward structure,” Wong added.
Despite these setbacks, Wong clarified that the shutdown was not due to a failure in the company’s vision but rather the result of external forces. “I didn’t fail the system; the system failed me,” he wrote. “This decision was incredibly difficult, and I deeply regret the outcome. I hope for your understanding during this challenging time.”
