On February 25, 2026, major news broke in the prop firm industry. The Ontario Superior Court of Justice ordered the OSC (Ontario Securities Commission) to pay MyForexFunds $80,000 (approximately 12 million yen) in legal costs. This unprecedented ruling represents more than five times the highest previous award of this kind against the OSC.
This article provides a comprehensive analysis of the MyForexFunds trial, the possibility of trader refunds, and the impact on the prop firm industry.
Timeline of the MyForexFunds Case
August 2023: Sudden Asset Freeze
MyForexFunds (MFF) was established in Ontario, Canada in 2020 and provided services to traders in over 80 countries worldwide, making it the world’s largest prop firm at the time.
However, in August 2023, the OSC (Ontario Securities Commission) froze MFF’s business assets. Simultaneously, the U.S. CFTC (Commodity Futures Trading Commission) filed a lawsuit, forcing MFF to cease operations overnight.
Many traders were left unable to withdraw their funds, sending shockwaves throughout the industry.
[speech_bubble type=”std” subtype=”L1″ icon=”shinsho.png” name=”しんしょ君”]Man, that really freaked everyone out… The people who had withdrawal requests pending were hit the hardest[/speech_bubble]
[speech_bubble type=”std” subtype=”R1″ icon=”kaitai.png” name=”かいたい先生”]At the time, there was almost an atmosphere that “prop firms = scams.” But this ruling has changed the situation dramatically[/speech_bubble]
May 2025: Complete Victory in the U.S.
The turning point came in May 2025. A U.S. federal judge dismissed the CFTC’s lawsuit “with prejudice”. “With prejudice” means the case cannot be refiled—a complete victory for MFF.
Furthermore, the court ordered the CFTC to pay MFF $3.1 million (approximately 460 million yen) in attorney fees. CFTC staff were found to have “deliberately made false statements in an attempt to justify the asset freeze.”
[speech_bubble type=”std” subtype=”L1″ icon=”shinsho.png” name=”しんしょ君”]Wait, the regulatory authority was lying!?[/speech_bubble]
[speech_bubble type=”std” subtype=”R1″ icon=”kaitai.png” name=”かいたい先生”]That’s right. The court found “bad faith.” It’s extremely rare for a regulatory authority to be sanctioned like this[/speech_bubble]
February 2026: Appeal Victory in Canada Too
OSC Ordered to Pay ,000
Then on February 25, 2026, a landmark ruling was delivered in Ontario Superior Court of Justice in Canada.
- OSC ordered to pay MFF $80,000 in legal costs (more than five times the previous record)
- Court ordered the return of most frozen business assets
- Justice Kimmel made an unusually critical statement that the OSC’s performance of its public interest duties was “unimpressive“
MFF founder Murtuza Kazmi stated:
“This decision is a clear signal that regulatory authority must be exercised with accountability and transparency. We have maintained from the beginning that the actions taken against our company were based on unsubstantiated claims.”
[speech_bubble type=”std” subtype=”R1″ icon=”kaitai.png” name=”かいたい先生”]The regulatory authorities lost in both the U.S. and Canada. This will become a very important precedent for the prop firm industry[/speech_bubble]
What About Trader Refunds?
The most pressing question is refunds for traders who had withdrawal requests at the time of the 2023 closure.
MFF has officially announced that “traders who submitted withdrawal requests before the forced closure are eligible to receive their funds.”
The following process is currently underway:
- Completion of receivership procedures
- Comprehensive review of finances and operations
- Implementation of refunds to eligible traders
[speech_bubble type=”std” subtype=”L1″ icon=”shinsho.png” name=”しんしょ君”]They had to wait two and a half years, but it’s good if they actually get their money back![/speech_bubble]
[speech_bubble type=”std” subtype=”R1″ icon=”kaitai.png” name=”かいたい先生”]However, not everyone is eligible. Only those who “submitted withdrawal requests before the closure” qualify. Check MFF’s official website for details[/speech_bubble]
Impact on the Prop Firm Industry
1. Deterrent Effect on Regulatory Authorities
This ruling creates a deterrent against regulatory authorities arbitrarily shutting down prop firms. A precedent has been set that “baseless enforcement actions can result in sanctions.”
2. Reaffirmation of Prop Firm Legitimacy
MFF’s business model (simulated trading) itself was not invalidated, as confirmed by courts in two countries. This is a positive signal for the entire industry.
3. Protection of Trader Rights
The ruling demonstrates that there is recourse for traders who suffered losses due to excessive regulatory actions.
Summary: What This Ruling Means
| Item | Details |
|---|---|
| Ruling Date | February 25, 2026 |
| Court | Ontario Superior Court of Justice |
| Payment Order to OSC | $80,000 CAD |
| U.S. CFTC Sanction | $3.1 million USD (May 2025) |
| Trader Refunds | Eligible for those with pre-closure withdrawal requests |
| MFF’s Future | Resolving receivership, operational review underway |
[speech_bubble type=”std” subtype=”R1″ icon=”kaitai.png” name=”かいたい先生”]Because the prop firm industry is growing so rapidly, its relationship with regulation is still unstable. But I think this ruling is a major step forward in terms of “protecting legitimate businesses”[/speech_bubble]
[speech_bubble type=”std” subtype=”L1″ icon=”shinsho.png” name=”しんしょ君”]But there are firms like MyFundedFX that actually did shut down, so we need to be careful when choosing a firm[/speech_bubble]
[speech_bubble type=”std” subtype=”R1″ icon=”kaitai.png” name=”かいたい先生”]Exactly right. Choosing a trustworthy firm is the best risk management. Our site includes detailed reviews of various firms, so please use them as a reference[/speech_bubble]
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