Caixin: Part of the funds involved in Star Bridge Capital’s London gold margin call incident were deposited via USDT, making it more difficult for investors to recover their funds.

According to Caixin, Star Bridge Capital (SBCFX) has suffered an abnormal liquidation incident in London Gold trading. After the incident, the platform’s Hong Kong office is now deserted, leaving some investors facing huge losses. Multiple investors revealed that their automated London Gold (XAUUSD) derivative trades on Star Bridge Capital encountered extreme abnormal activity on the evening of August 19: the system automatically generated massive reverse short orders in just 1 to 3 seconds, followed by a rapid rise in international gold prices, leading to collective account liquidations—some accounts were wiped out entirely, while others even showed negative balances. London Gold liquidation refers to the trading risk where, due to a position direction opposite to gold price movement and leverage amplifying losses, an investor’s account available margin is exhausted and falls below the maintenance margin ratio, resulting in forced liquidation by the platform and total loss of principal. Affected investors estimate the incident involves approximately 2,000 to 3,000 people, including a large number of mainland Chinese investors. Currently, some investors have filed reports with Hong Kong police, demanding the platform refund 70% of their principal in accordance with its previously promised rule of “maximum loss of 30%”. Some investors noted that Star Bridge Capital offered up to 500x leverage, and some funds were deposited via USDT stablecoins, which has increased the difficulty of tracking the funds. Public information shows that Star Bridge Capital’s business scope covers foreign exchange, commodities, indices, cryptocurrencies, etc., and it publicly claims to be a licensed and compliant international trading platform. (Caixin)