In February 2026, another shocking news hit the prop firm industry. MyFundedFX (now Seacrest Funded) announced the closure of its prop trading division. Withdrawal processing was suspended, leaving many traders with funded accounts stranded with unpaid profits.
This article explains the timeline of MyFundedFX’s closure, the situation of affected traders, and lessons learned to prevent similar situations.
What is MyFundedFX (Seacrest Funded)?
MyFundedFX was a prop firm that held a certain market share in the overseas prop trading industry. It later rebranded to “Seacrest Funded” and continued operations under the umbrella of Seacrest Markets.
However, in February 2026, they suddenly announced the closure of their prop trading division. Withdrawal processing was suspended, effectively halting all operations.
[speech_bubble type=”std” subtype=”L1″ icon=”shinsho.png” name=”しんしょ君”]Another closure… What happens to people who had funded accounts?[/speech_bubble]
[speech_bubble type=”std” subtype=”R1″ icon=”kaitai.png” name=”かいたい先生”]Unfortunately, those who couldn’t withdraw in time are in a tough situation. In 2024 alone, 80-100 prop firms disappeared from the industry[/speech_bubble]
Timeline of Closure and Impact
Sudden Operational Shutdown
The closure of MyFundedFX/Seacrest Funded occurred without adequate advance notice. The following impacts have been reported:
- Complete suspension of withdrawal processing — Many traders unable to withdraw profits
- Invalidation of funded accounts — Active accounts rendered unusable
- Delayed support response — Slow or no responses to inquiries
Voices of Affected Traders
On social media, traders with funded accounts exceeding $100,000 have reported serious losses. Some cases involved traders who learned about the closure just as they were working toward their fifth withdrawal.
[speech_bubble type=”std” subtype=”L1″ icon=”shinsho.png” name=”しんしょ君”]Right before the fifth withdrawal… All that hard work gone just like that[/speech_bubble]
[speech_bubble type=”std” subtype=”R1″ icon=”kaitai.png” name=”かいたい先生”]That’s exactly why “withdraw immediately when possible” and “don’t depend on a single firm” are golden rules[/speech_bubble]
Why Do Prop Firms Close Down?
Between 2024 and 2026, many prop firms have been forced to shut down. The main causes are as follows:
1. Business Model Failure
The main revenue source for prop firms is challenge fees. However, when trader pass rates increase, payout amounts exceed income, making the business unsustainable.
2. Lack of Regulation
Most prop firms operate outside financial regulation. As a result, they can change rules or shut down without advance notice.
3. Intensified Competition
With new entrants flooding the market, price competition for challenge fees has intensified. Profit margins decline, and weaker firms drop out first.
5 Key Lessons to Avoid Prop Firm Selection Mistakes
Lesson 1: Verify Track Record and Years of Operation
Choose firms with at least 2 years of operational history. Firms like FTMO (since 2015) and FundedNext (since 2022) have proven reliability through long-term stable operations.
Lesson 2: Check Withdrawal Reports
Verify actual trader withdrawal records through Trustpilot reviews, X (Twitter) withdrawal reports, and Discord screenshots.
Lesson 3: Withdraw Profits Immediately
Withdraw as soon as possible when eligible. Waiting to “grow it a bit more” exposes you to closure risks.
Lesson 4: Diversify Across Multiple Firms
Don’t depend on a single firm. Spread accounts across 2-3 companies to minimize damage if one shuts down.
Lesson 5: Don’t Miss Warning Signs
Be cautious when you notice these signs:
- Increasing withdrawal delays
- Sudden rule changes
- Slower support response times
- Rising complaints on social media
[speech_bubble type=”std” subtype=”R1″ icon=”kaitai.png” name=”かいたい先生”]Ultimately, choosing “established firms with proven track records and numerous withdrawal reports” is the best risk management. Check out our rankings for reference[/speech_bubble]
Conclusion
The closure of MyFundedFX (Seacrest Funded) has once again highlighted the risks in the prop firm industry.
- Since 2024, over 80-100 prop firms have disappeared
- Due to lack of regulation, trader protection is limited
- Firm selection = Ultimate risk management
Choose trustworthy firms, diversify risks, and withdraw profits immediately. Following these three principles is the key to long-term success with prop firms.
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