Mars FX Lawsuit & Bankruptcy | Investor Recovery Options
The White Law Group is investigating claims on behalf of investors who lost money in Mars FX US LP, a private hedge fund that reportedly filed for bankruptcy in March 2026. Here is what happened, which brokerage firms sold the fund, and what your options may be.
Mars FX US LP filed for Chapter 11 protection earlier this year. Investors now face a bankruptcy, a cross-border liquidation and a growing number of lawsuits. Investors who bought Mars FX through a broker may be able to recover losses through FINRA arbitration against the brokerage firm that sold it.
What Was Mars FX?
Mars FX US LP was purportedly a Delaware partnership formed in 2020 to raise money from U.S. investors for currency and gold trading. It fed money into Mars FX Master Ltd, a Cayman Islands fund, while a second feeder fund raised money outside the U.S. The minimum investment was $250,000, and according to Bloomberg, the fund told investors it averaged about 19% a year with no losing months.
Mars FX Lawsuits and Bankruptcy
At least one investor has sued the fund’s managers and its auditor. The suit alleges that no one properly verified that the fund’s reported assets existed. These allegations have not been proven. The fund reportedly suspended redemptions in January 2025. Mars FX filed for Chapter 11 bankruptcy in New York on March 23, 2026.
Which Brokerage Firms Sold Mars FX?
The fund’s 2023 and 2024 Form D filings with the SEC list two FINRA-registered broker-dealers that received sales compensation. The first is Old City Securities LLC, through representative Tamara Totah. The second is Frontier Solutions, LLC, now known as Frontier Securities. Totah currently faces a $7.25 million FINRA arbitration claim over her Mars FX sales.
Can Mars FX Investors Recover Their Money?
Any recovery through the bankruptcy depends on what the litigation trust can collect, and that could take years. Investors who bought through a broker may have a separate claim against the brokerage firm that recommended the fund. The White Law Group is a national securities fraud law firm with offices in Chicago and Seattle, and we represent investors in FINRA arbitration. For a free consultation, call (888) 637-5510 or contact us online.
Frequently Asked Questions
How do I file a claim to recover money I lost in Mars FX?
If a broker sold you Mars FX, your claim against the broker and the firm will generally go through FINRA arbitration rather than court. Most brokerage account agreements typically include a pre-dispute arbitration clause, and many retail investors don’t know they signed one. Arbitration can still result in a monetary award, and it is separate from any claim you have in the bankruptcy.
What makes an investment like Mars FX unsuitable, and why does it matter?
A broker must have a reasonable basis to believe a recommendation fits your goals, risk tolerance and finances, and Regulation Best Interest requires the recommendation to be in your best interest. Mars FX was a private, hard-to-sell fund that relied on an overseas trading platform the public couldn’t verify. Recommending a product like that without explaining its risks, or putting too much of an investor’s money into it, may support a claim.
Can the brokerage firm be held responsible if it didn’t know about the problems at Mars FX?
It may be. FINRA requires firms to investigate private offerings before their brokers sell them, and to supervise how their brokers recommend them. A firm that skipped that work, or missed red flags a reasonable review would have caught, may be liable for investor losses.
