Trader Denied Payout Over VPN Claim Sparks Prop Firm Backlash
The prop trading community is once again questioning fairness in the evaluation and payout process. Recently, trader @Kapkaracaa shared that after successfully passing a challenge with Instant Funding and scaling a $10,000 account to $40,000, he was denied a payout. The firm cited alleged VPN violations without offering him any chance to explain or appeal the decision.
Dear @LewisM_IF @InstantFunding_
— Karaçbey (@Kapkaracaa) April 19, 2025
I have made %25 profits on my 10k acc, scaled up to 40k and requested a 2k payout which has been denied due to VPN/VPS usage. Im trading only on mobile since Im trading with you and never used a vpn. Im only checking my dashboard from my company+ pic.twitter.com/M8gFI0HIha
Backing him up, @MTradingX jumped into the discussion, pointing out that the flagged connection was likely not a traditional VPN at all. Instead, he explained that many corporate laptops use ZScaler, a professional-grade security tool that reroutes internet traffic through secure data centers to prevent malware attacks — which could easily trigger VPN-like behavior.
So another case another BS reasoning to not pay a trader.
— Mat (@MTradingX) April 22, 2025
ZScaler is used on corporate laptops in order to protect from malware/hacking and leaking company data, it has a built in software Kernel level coding that reroutes the system into datacentres where the connection is… https://t.co/yqJRO3Vpn7
MTradingX also noted that the trader’s performance — scaling the account significantly without breaching any rules — should have earned him the benefit of the doubt. He called on Instant Funding to honor the payout first before taking any punitive action if genuinely warranted.
What's the Bigger Issue?
This incident highlights broader frustrations among traders who feel that prop firms sometimes use vague technicalities, like "VPN usage," to deny legitimate payouts.
The community is increasingly calling for:
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Transparent rule enforcement
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Proper investigation before denial
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Clear appeals processes
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Fair communication between firms and traders
As prop trading grows in popularity, traders demand higher standards of professionalism and accountability to avoid situations where genuine profits are wiped away by poorly handled accusations.
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