The prop trading world is once again fired up — this time over a payout denied by Instant Funding due to an alleged VPN violation.

Trader @Kapkaracaa publicly shared that after passing a challenge, growing his $10,000 account to $40,000, and requesting a $2,000 payout, the firm refused to pay out, citing “VPN/VPS usage” — without offering a chance to explain or appeal.

“I’ve only traded on mobile and checked my dashboard from work. I never used a VPN,”
wrote @Kapkaracaa on X.

But Was It Even a VPN?

Trader and community figure @MTradingX chimed in, suggesting the flagged connection may not have been a VPN at all — but rather ZScaler, a professional security system used on corporate laptops that can reroute traffic through secure data centers, mimicking VPN behavior.

He argued that the trader’s solid performance and lack of rule breaches should have led to a payout-first, investigate-later approach, instead of what he called a “technicality-first denial.”

You can read his full post and explanation here.

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The Community's Growing Frustration

This isn’t just about one trader.

The situation underscores a broader tension in the prop space, where firms are increasingly accused of using vague or unverifiable violations (like VPN usage) to deny legitimate payouts.

What traders are asking for:

• Transparent rule enforcement
  
  
• Proper investigation before denial
  
  
• Clear appeal processes
  
  
• Fair and open communication
  
  

As prop trading grows, so do expectations for professionalism and trust. When profits are on the line, "VPN" can’t be the new excuse.

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