Another Prop Firm Down! MPFunds Shuts Down Amid Banking Issues

Singapore-based prop trading firm MPFunds has announced its permanent closure, citing the termination of banking services and the collapse of a planned Series-A financing round. In an open letter posted on the company's website, founder and CEO Dean Wong expressed deep regret over the decision, stating that the company had faced insurmountable challenges in recent months.

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MPFunds, which had marketed itself as Asia's first "Modern Prop Firm," encountered a significant setback when its banking partner abruptly terminated all services without providing a clear reason. Wong explained in the letter, "Despite the provision of all the necessary evidence and legal documents requested from the bank, appeals to reinstate the account were closed without any room for negotiations." The sudden loss of banking services severely impacted the firm's ability to manage finances and continue operations.

The firm had also planned to close a Series-A funding round on September 11, 2024, but this effort fell through, further compounding the financial difficulties. Wong attributed part of the need for new funding to the discovery of suspicious activities among a small number of users who had exploited the platform. "An increase in prohibited and/or suspicious activities amongst our users in recent months has also been found, where traders collectively took advantage of our platform," Wong noted.