Key facts
- Thousands of retail gold traders faced account liquidations due to a trading anomaly on the SBCFX platform.
- The incident occurred on August 19, involving leveraged London Gold (XAUUSD) derivative trading.
- Automated trading systems allegedly triggered massive short positions, leading to account wipeouts and negative balances.
- An estimated 2,000 to 3,000 investors, many from mainland China, were impacted.
- Investors have reported the issue to Hong Kong police and are seeking partial principal refunds.
- Allegations suggest high leverage (up to 500x) and USDT deposits were used on the platform.
Thousands of retail gold traders have suffered substantial losses following a severe trading anomaly on the Star Bridge Capital Group Ltd (SBCFX) platform. The incident, which occurred on the evening of August 19, involved leveraged trading of London Gold (XAUUSD) derivatives. According to multiple investors, the platform's automated trading system generated massive opposing short positions within a mere 1 to 3 seconds. This was followed by a rapid surge in international gold prices, leading to the collective liquidation of investor accounts. Some accounts were reportedly wiped to zero, while others incurred negative balances.
Estimates suggest that between 2,000 and 3,000 individuals were impacted, with a significant number being mainland Chinese investors. Affected traders have filed complaints with the Hong Kong Police, demanding that SBCFX honor a stated policy of capping losses at 30% and refunding 70% of their principal. Investors also claim that SBCFX offered leverage as high as 500 times and accepted deposits via USDT stablecoin, which may complicate efforts to trace the funds. Following the incident, SBCFX's Hong Kong office was found to be vacated.