The Jereh gold trading platform in Shenzhen has collapsed, leaving over 150,000 investors unable to recover most of their funds. According to NS3.AI, the platform operated a leveraged betting scheme without physical gold backing, which has led to widespread outrage among investors. Attempts at repayment have offered only a small fraction of the principal, prompting victims to refuse to waive legal claims.
This collapse is part of a broader trend in China, where unstable and unlicensed gold platforms are facing liquidity crises amid rising gold prices. The situation highlights the risks associated with investing in unregulated financial schemes and the growing concern over the stability of such platforms in the country.