SBCFX London Gold (XAUUSD) Trading Glitch Triggers Heavy Investor Losses; Hong Kong Office Found Vacant

Huo Xing Cai Jing reported that SBCFX has been hit by an abnormal liquidation incident involving London Gold (XAUUSD) trading, leaving a number of investors facing sizable losses after the firm's Hong Kong office was found abandoned. Several investors said that on the evening of August 19, automated positions in London Gold (XAUUSD) derivatives on the SBCFX platform showed extreme irregularities. Within 1 to 3 seconds, the system allegedly opened a large number of opposing short positions, and as international gold prices quickly jumped, widespread margin calls and forced liquidations followed. Some accounts were wiped out to zero, while others fell into negative balances, leaving clients owing money. Investors described the event as a "London Gold liquidation" scenario, where positions move against the direction of gold prices and, under leverage, losses exceed available margin. The platform then forcibly closes positions, potentially resulting in a total loss of principal. Affected clients estimate roughly 2,000 to 3,000 people were impacted, including many mainland Chinese investors. Some have filed reports with Hong Kong police and are calling on SBCFX to honor an earlier promise to cap maximum losses at 30%, returning 70% of principal. Multiple investors said SBCFX offered leverage of up to 500x. Some deposits were made using USDT stablecoins, which they said may complicate tracing the flow of funds. Public information shows SBCFX claims to provide trading in forex, commodities, indices and cryptocurrencies, and markets itself as a licensed, compliant international trading platform.