$19 Billion Gold Platform Scam: 150,000 Chinese Investors Offered Just 20% Back
The Crisis:
Jie Wo Rui platform (Shenzhen) froze all withdrawals on Jan 20, 2026, triggering massive investor panic.
Conflicting Reports on Scale:
➤ Social media claims: 134 billion yuan (~$19B USD)
➤ Media reports: 13.4 billion yuan (~$1.9B USD)
➤ Official estimate: 10 billion yuan (~$1.4B USD)
➤ Authorities: widely circulated figures "significantly exaggerated"
➤ Investors affected: 22,000-150,000
How The Scam Worked:
Platform operated unlicensed leveraged gold trading via WeChat apps. Users locked prices with deposits as low as $4, but NO physical gold backing existed. When gold surged to $5,000+/oz, liabilities exploded.
Current Status (per CNA & Global Times):
🔴 Authorities supervising asset disposal
🔴 ~20% compensation offered (actual: 6-20%)
🔴 Victims must waive legal rights
🔴 Platform owner unreachable
🔴 Described as "redemption issue" but fraud claims persist
Red Flags Investors Missed:
✗ Unregulated platform
✗ Extreme leverage with tiny deposits
✗ No proof of physical gold custody
✗ Unrealistic promises
Key Takeaway:
Whether $1.4B or $19B, this is a MASSIVE failure exposing risks in China's unregulated gold apps. Always use licensed platforms and verify actual asset backing.
Multiple similar platforms now under investigation.