Hong Kong's Securities and Futures Commission (SFC) adds SBCFX and related companies Star Bridge Capital to its alert list for unlicensed operations

The Hong Kong securities market regulator declared broker SBCFX and many of its affiliated companies unlicensed shortly after a trading collapse wiped out the holdings of thousands of gold investors $USDT

According to reports, on August 28, the Singapore Securities and Futures Commission (SFC) added SBCFX, Star Bridge Capital Group, Star Bridge Capital Pty Limited, and Topical Wealth International Ltd to its alert list, along with the Chinese names 星橋資本 and 星橋資本集團. The warning includes a link to the broker's website sbcfx.com.

The regulator's position is limited but important, as according to the Hong Kong Securities and Futures Commission (SFC), none of the entities involved in the case hold a license or registration to conduct regulated activities in Hong Kong.

Companies located outside Hong Kong are prohibited from advertising their services to Hong Kong residents without prior approval.

The alert does not mean fraud occurred or that the licenses the group holds in other jurisdictions are no longer valid. However, it does mean that Hong Kong clients dealing with these entities are not afforded the protection typically provided to SFC-licensed firms.

The London Gold Market Crash that Prompted This

This decision came at a time when controversy was brewing around SBCFX. On August 22, Caixin Global reported that investors and Hong Kong police gathered at SBCFX's office in The Center mall in Central following a major trading malfunction that led to mass liquidations on the London gold market and wiped out the accounts of thousands of retail investors.

Caixin estimated that around 3,000 investors from mainland China and elsewhere could face losses as a result.

The service issues were influenced by two growing problems facing regulators: the use of high-leverage algorithmic trading and the increase in cryptocurrency deposits on the over-the-counter derivatives market.

Another issue was determining precisely which entity traders were dealing with. Reports indicate SBCFX positioned itself as the online brand of Star Bridge Capital and cited connections with regulators in Australia, South Africa, and the Seychelles.

These include an Australian Financial Services License held by Star Bridge Capital Group Pty Ltd and a Seychelles dealer license held by Topical Wealth International Ltd. The broker clarifies that the entity serving each client depends on that client's residency.

Recovering These Deposits May Be Difficult

The nature of the operations also makes it challenging to recover these stablecoin deposits at present.

Investors were able to create leveraged positions using $USDT, the dollar-pegged Tether stablecoin, and stablecoins not held at a regulated institution are difficult to recover in case of problems.

A report published in March 2026 by the Financial Action Task Force (FATF) examined this issue. Peer-to-peer stablecoin transfers using non-custodial wallets do not involve any regulated virtual asset service providers between the transaction parties, while issuers sometimes may be unable to track transactions across different blockchains.

At the same time, the very features of $USDT that make it suitable for cross-border trading on investor accounts can also complicate the process of freezing or tracing assets if these individuals seek to recover their funds.

Even if the stablecoin issuer has the ability to intervene, fund recovery does not happen by itself. Tether states it has assisted in freezing over $4.4 billion in assets, cooperating with over 340 law enforcement agencies from more than 65 countries.

Cryptopolitan cited a report analyzing 2,955 Tether freeze cases in August. It found that on average, over two hours passed from the freeze proposal to its execution on the blockchain. Before the freeze, over sixty addresses transferred about $20.4 million worth of $USDT that was effectively written off.

For many traders trying to salvage assets in overseas accounts, this creates uncertainty about the possibility of fund recovery. The key point noted by the Hong Kong Securities and Futures Commission (SFC) is that none of the four names mentioned in the August 28, 2026 alert are licensed or registered with the SFC.

Holding overseas licenses does not mean these organizations were licensed by the Hong Kong Securities and Futures Commission (SFC). The SFC's August 28 alert explicitly states that all five companies, including SBCFX and three corporate names, are not licensed or registered with the SFC to conduct regulated activities.