QT Funded, a proprietary trading firm, is under scrutiny after a trader accused the company of scamming him by denying a funded account despite successfully passing Veriff's KYC verification.

According to the trader, his account was blocked after being told he had attempted KYC fraud. QT Funded responded by stating that while the trader did pass Veriff's automated process, the firm conducts additional internal checks to ensure full compliance. They claimed the trader's case raised red flags, but declined to share specifics.

Most likely, the trader passed Veriff's automatic KYC, but QT Funded found something in his documents or account activity that raised concerns, potentially VPN usage, similarities with other users, or other compliance issues. However, the firm should have handled this more carefully. Instead of letting the automated system approve and then overturning it, QT Funded could improve its process to avoid giving traders a false sense of approval before retracting access.

This incident highlights a broader issue in prop firm compliance, balancing strict fraud prevention with transparent communication to avoid backlash from traders.