Prop Firms That Shut Down

In September 2023 the US CFTC and Ontario's OSC froze the firm's assets, alleging fraud, and it stopped operating. Crucially, those allegations were never proven: in May 2025 a US federal judge dismissed the CFTC's case with prejudice and sanctioned the agency for litigation misconduct.

Lesson. A regulator's charge is an allegation, not a verdict — and a firm that acts as the counterparty to its own funded traders carries a built-in conflict either way.

MetaQuotes terminated the firm's MT4/MT5 licences in February 2024, alleging an unacceptable third-party account-synchronisation setup. Management called the halt "temporary" and promised outstanding payouts once the platform was restored, but the firm never durably returned and later reporting describes a permanent shutdown.

Lesson. Total dependence on a single tech provider is an existential single point of failure — and "temporary pause" language often precedes permanent closure.

Lost MetaTrader access in the 2024 MetaQuotes wave, migrated to Match-Trader, then had that licence terminated within weeks over unmet contract obligations. With no platform left, SurgeTrader announced its closure on 24 May 2024.

Lesson. Losing one platform is bad luck; losing a second within weeks points to an underlying business or contract problem, not just vendor politics.

Posted a notice that it had "temporarily ceased all operations, including new purchases, effective immediately," and never durably reopened. It shared an operations partner (Easton Consulting Technologies) with The Funded Trader, and the closure followed complaints about denied payouts and a troubled platform migration.

Lesson. When two firms share a back-end operator, one failing is a warning about the other. "Temporarily ceased" with no relaunch date usually means gone.

Caught in the 2024 platform-migration turmoil, the firm stopped onboarding new traders on 27 November 2024 and wound down its operations by 29 December 2024 — one of dozens of prop closures reported that year.

Lesson. A staged wind-down gives existing traders only a narrow window — treat "no new onboarding" as a countdown, not a pause.

After mounting payout-denial complaints, the firm (80,000+ accounts) imposed an internal audit that froze withdrawals and then paused all operations on 28 March 2024. It cleared a large backlog only slowly — reporting a fraction of owed payouts months later — before resuming under a relaunch.

Lesson. A "self-imposed internal audit" that freezes every withdrawal is a classic distress signal — and payout recovery, even when a firm survives, tends to be slow and partial.

MyFundedFX rebranded to SeacrestFunded in early 2025 to align with its in-house broker. On 6 February 2026 it ended its forex/CFD proprietary-trading operations to focus on CFD brokerage, closing all prop accounts and offering refunds within 30 days — with carve-outs excluding breached, inactive and giveaway accounts. Its separate futures arm reportedly continues.

Lesson. Even an orderly, "we'll refund you" wind-down cuts off funded traders' income — and refund eligibility carve-outs can leave many with nothing.