In a significant legal development, FPFX Technologies, LLC has initiated a lawsuit against Funded Engineer, along with key personnel Tristian Talbot and Harri Jean David Sawicki. The lawsuit, filed in Palm Beach County, Florida, arises from allegations of contract breaches underpinned by fraudulent activities, according to documents filed by FPFX Tech.
The Genesis of the Dispute
The complaint lodged by FPFX centers on a software services agreement dated June 2, 2023, which granted Funded Engineer specific rights to utilize FPFX’s trading software in exchange for monthly fees among other payments. An audit conducted by FPFX in January 2024 allegedly uncovered manipulative record-keeping by Funded Engineer designed to diminish the payments due under their contract. This reportedly included the creation of fictitious trading accounts and engaging in deceptive trading practices known as “wash trading,” leading to a projected loss of $700,000 for FPFX.
Escalating to Legal Action
FPFX’s legal action follows what they describe as “nefarious, illegal, and unethical activities” by Funded Engineer, prompting the termination of their software agreement on February 7, 2024. Following this termination, FPFX requested mediation in March, adhering to the dispute resolution mechanisms outlined in their agreement.
Allegations of Deceptive Practices
The allegations against Funded Engineer include serious accusations of bypassing Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols, along with generating fake payouts. According to FPFX’s audit, Funded Engineer not only created spurious trader profiles but also approved these accounts for trading without the necessary background checks, contravening typical regulatory requirements.
Furthermore, it is claimed that Funded Engineer’s actions extended to falsifying payout statistics through these accounts. Despite records indicating payouts were approved, no actual funds were disbursed. Instead, transactions were purportedly simulated through cryptocurrency wallets and payroll services without any genuine financial transfers.
Financial Discrepancies Revealed
FPFX alleges that through these methods, Funded Engineer grossly inflated its financial disbursements by over $2 million, a figure prominently advertised by co-founder Tristian Talbot on various social platforms.
Funded Engineer’s Response
In reaction to the lawsuit and the termination of the software licensing agreement, Funded Engineer has expressed dismay at the lack of prior dialogue and the sudden public relations campaign undertaken by FPFX. The firm contends that the abrupt cessation of services and the negative publicity were unfounded and lacked a preliminary attempt at resolution.
Funded Engineer acknowledges the severity of the situation and the ongoing legal proceedings, which restrict their capacity to discuss the case publicly. Nonetheless, they assure their community of their commitment to addressing the issue with utmost seriousness.
Looking Ahead
As the legal battle unfolds, the trading community watches closely, with outcomes likely to impact the operations and reputation of both Funded Engineer and FPFX Technologies significantly. This case highlights the complexities and potential pitfalls within the fintech and proprietary trading sectors, especially regarding compliance and contractual obligations.
