ChainCatcher reported that Xingqiao Capital, known as SBCFX, has been accused of an abnormal liquidation event in London gold trading. After the incident, the platform’s Hong Kong office was reportedly found empty, and some investors are facing heavy losses.
According to multiple investors, they were using SBCFX’s platform for automated trading in London gold (XAUUSD) derivatives when an extreme trading anomaly occurred on the night of Aug. 19. They said the system automatically opened massive reverse short positions within one to three seconds. International gold prices then climbed quickly, pushing accounts into broad liquidation. Some accounts were reduced to zero, and some reportedly showed negative balances.
In the accounts cited by ChainCatcher, a London gold liquidation refers to a situation in which a position moves against the direction of gold prices and losses are amplified by leverage. Once available margin is exhausted and falls below the maintenance margin requirement, the platform forces liquidation, leaving investors with a total loss of principal.
Affected investors estimated that about 2,000 to 3,000 people were involved in the incident, including a large number of mainland Chinese investors. Some investors have reported the case to Hong Kong police and are asking the platform to follow what they described as its earlier 「maximum loss of 30%」 rule by returning 70% of principal.
Some investors also said SBCFX offered leverage of as much as 500x. They added that part of the funding was deposited through the USDT stablecoin, making the movement of funds harder to trace.
Publicly available information shows that SBCFX said its business covered foreign exchange, commodities, indices, and cryptocurrencies, and that it presented itself as a licensed and compliant international trading platform.