SBCFX London gold liquidation incident leaves some USDT-funded investors facing heavy losses

News Editor

2026-08-21 12:55:29

SBCFX, also known as Xingqiao Capital, has come under scrutiny after an abnormal liquidation incident tied to London gold trading, with some investors now facing steep losses. According to a newsflash published by Odaily, citing Caixin, the firm’s Hong Kong office was found vacant after the incident. Multiple investors said they were using the platform’s automated trading product for London gold (XAUUSD) derivatives when extreme trading activity hit on the night of Aug. 19. They claimed the system generated massive reverse short positions within one to three seconds, just before international gold prices moved sharply higher. The move allegedly triggered broad liquidations across accounts. Some balances were wiped out entirely, while others reportedly fell into negative territory. Affected investors estimate that roughly 2,000 to 3,000 people may have been caught up in the event, including a large number from mainland China. Some have already reported the case to Hong Kong police and are asking the platform to honor what they described as a prior “maximum 30% loss” commitment by returning 70% of their principal. Investors also said SBCFX offered leverage of up to 500x, and that some deposits were made in USDT, making fund tracing harder.

SBCFX, or Xingqiao Capital, has been accused of an abnormal liquidation event in London gold trading, with some investors facing major losses. Odaily reported, citing Caixin, that the platform’s Hong Kong office was vacant after the incident.

According to multiple investors, they were using SBCFX’s automated trading product for London gold (XAUUSD) derivatives when extreme trading activity 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 moved sharply higher, triggering collective liquidations across accounts. Some investors said their balances fell to zero, while some accounts showed negative debt.

Investors describe abnormal trades and forced liquidations

The report described a London gold liquidation as a situation in which a trade moves against the direction of gold prices and, with leverage involved, losses become large enough to exhaust available margin. Once an account falls below the maintenance margin requirement, the platform can force close the position, leaving the investor with a full loss of principal.

Investors affected by the incident estimate that about 2,000 to 3,000 people were involved, including a large number of mainland Chinese investors.

Some investors have reported the case to Hong Kong police

Some affected investors have reported the matter to Hong Kong police and are asking the platform to follow what they said was an earlier promise of a “maximum 30% loss” rule by returning 70% of their principal.

Some investors also said SBCFX offered leverage of up to 500x. Part of the capital was deposited through the USDT stablecoin, which they said made fund tracing more difficult.

Public materials describe the firm as a multi-asset trading platform

According to public information cited in the report, SBCFX’s business covers foreign exchange, commodities, indices and cryptocurrencies. The company has also presented itself publicly as a licensed and compliant international trading platform.

This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan.

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