SBCFX London Gold Trading Incident Leaves 2,000–3,000 Investors Facing Heavy Losses

ChainCatcher report: SBCFX experienced an abnormal liquidation event involving London Gold (XAUUSD) trading. Following the incident, the company’s Hong Kong office was found abandoned. Several investors are facing massive losses. According to multiple investors, automated trades on the SBCFX platform for London Gold (XAUUSD) derivatives suffered extreme anomalies on the evening of August 19: the system generated massive opposing short positions within 1 to 3 seconds, followed by a rapid surge in international gold prices, triggering mass account liquidations. Some accounts were reduced to zero balance, while others incurred negative balances. A “London Gold liquidation” refers to a trading risk where positions move against the gold price direction, and due to leverage, losses exceed available margin, causing the platform to forcibly close positions and result in total loss of principal. Affected investors estimate that approximately 2,000 to 3,000 individuals were impacted, including a large number of mainland Chinese investors. Some investors have filed police reports with Hong Kong authorities and are demanding that SBCFX honor its prior commitment to cap losses at 30%, thereby refunding 70% of the principal. Some investors reported that SBCFX offered leverage as high as 500x, and that funds were deposited via USDT stablecoin, complicating fund tracking. Public records indicate that SBCFX claims to offer trading services in forex, commodities, indices, and cryptocurrencies, and presents itself as a licensed and compliant international trading platform.