SBCFX London Gold Trading Glitch Sparks Mass Liquidations, 2,000–3,000 Investors Hit With Major Losses

ChainCatcher reports that SBCFX has been hit by an abnormal liquidation incident linked to London Gold (XAUUSD) trading, leaving a large number of clients facing steep losses. After the event, SBCFX's Hong Kong office was reportedly found vacated. Multiple investors said the platform's automated trading in XAUUSD derivatives malfunctioned on the evening of Aug. 19. Within 1–3 seconds, the system allegedly opened large offsetting short positions, and as international gold prices quickly surged, accounts were liquidated en masse. Some accounts were wiped to zero, while others fell into negative balances. In this context, a "London Gold liquidation" describes a scenario in which positions move against the price of gold and, under leveraged trading, losses exceed available margin. The platform then forces position closures, potentially resulting in a total loss of principal. Affected investors estimate roughly 2,000 to 3,000 people were impacted, including a significant number of mainland Chinese investors. Some have filed reports with Hong Kong police and are urging SBCFX to honor an earlier commitment to cap losses at 30%, seeking a refund of 70% of principal. Investors also claimed SBCFX offered leverage as high as 500x and accepted deposits in the USDT stablecoin, which may make fund tracing more difficult. Public information shows SBCFX markets itself as a licensed, compliant international trading platform providing access to forex, commodities, indices and cryptocurrencies.