A major gold trading scandal has surfaced in China after the collapse of an unlicensed precious metals platform (JWR) in early 2026. The platform reportedly allowed retail investors to take “digital gold” positions without proper regulatory approvals, capital safeguards, or liquidity backing.
When gold prices moved sharply, and users rushed to withdraw funds, the platform couldn’t meet payout,s leaving investors stuck with an estimated ¥10 billion (~$1.4B) in unpaid claims.
Authorities have now launched a multi-agency investigation, and the episode is being viewed as a serious warning sign about weak oversight of alternative “gold investment” platforms and the risks retail investors face when products operate outside formal regulation.