The collapse of Shenzhen-based Jereh, a gold trading platform, has left over 150,000 investors struggling to recover their funds. Jereh, which operated without physical gold backing, engaged in leveraged betting with up to 40 times leverage, leading to unsustainable liabilities when gold prices surged. Withdrawals were restricted on January 20, prompting thousands of investors to demand their money at the company's office.
The local government has initiated a task force to manage repayments, but investors face grim prospects. Initial payout offers are significantly below expectations, with some receiving as little as 6% of their holdings. Additionally, Jereh's redemption process requires signing a "criminal pardon letter," waiving legal rights, which many investors refuse to accept. The situation highlights a broader issue of unlicensed gold platforms in China facing similar crises.
Shenzhen's Jereh Platform Collapse Leaves 150,000 Investors Stranded
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.
