Shenzhen’s Jereh Collapse: 150,000 Gold Investors Offered Pennies on the Dollar

The Jereh gold trading platform in Shenzhen, which functioned as an unlicensed, highly leveraged options trading scheme without physical backing, has collapsed, affecting over 150,000 investors. The platform attracted users with zero-fee exchanges and a "pre-set price trading" product, essentially betting against its users with leverage up to 40 times. When gold prices surged, Jereh could not cover its liabilities, leading to withdrawal restrictions around January 20th and subsequent protests.

A government task force announced a repayment scheme following an asset disposal, though they disputed the widely circulated figure of 13.4 billion yuan in unpaid funds. The proposed payouts are drastically low, ranging from 20% to 40% of the principal, with some victims receiving as little as 6% of their holdings. Furthermore, customers holding platinum were excluded from calculations, fueling suspicion that Jereh never held the physical metal.

Outrage has intensified because the redemption process requires victims to sign a "criminal pardon letter," waiving their right to sue for further recovery. Many investors are refusing this offer, opting instead to pursue independent legal action against the platform, whose owner, Zhang Zhiteng, remains unreachable. This incident is part of a larger trend of similar unlicensed gold platform failures across China.

(Source：BeInCrypto)