More than 10 Chinese financial institutions, most of which are investment trusts, have been replaced by Wuhan Kingold Jewelry Inc. in the past 5 years. company lending $ 2.8 billion (20 billion yuan). The firm showed pure gold as the guarantee of these debts.

According to the news in the Nikkei Asian Review, Kingold is known as the largest private gold operator in Hubei region of China. Jia Zhihong, the oldest soldier who is known to have a frightening character, runs the company.

Gold bars of copper came out!

However, it turned out that some of the 83-ton gold, which the company has shown as collateral for debts, is copper. Fake gold was uncovered in February. Dongguan Trust Co. Ltd. When Kingold wanted to liquidate Kingold's collateral for unpaid debts, Kingold was unable to repay investors. The Dongguan Trust later announced that some of its gold nuggets found it to be copper.

The spread of the news created huge shock waves for the lenders and company investors lending to Kingold. Minsheng Trust Co.Ltd, one of Kingold's biggest creditors, also issued a court order to check the gold and the test results obtained on May 22 went the same way. Some of the guarantees were not gold, but copper.

While the authorities continue their research in detail on how this happened, Kingold chairman Jia Zhihong completely denies this situation regarding collateral.

While this incident was seen as one of China's biggest gold-guaranteed frauds, regulators found fraudulent gold nuggets in 19 lending company collateral vaults. These nuggets contain about 19 billion yuan collateral. A lender company also requested to dissolve gold. The company found tungsten plates, a metal alloy, among the gold nuggets.

Jia, the chairman of the board, also stated that the insurers' acceptance of gold as collateral refuted the claim that gold was counterfeit.

Unveiled the importance of Bitcoin

The development was evaluated as the answer to the question "Why Bitcoin". While assets such as gold, paper money and silver can be easily forged, it is not possible to counterfeit Bitcoin. This shows that Bitcoin is more effective than other assets in protecting against fraud.


editor

Manuel has three years of editorial experience, specializing in language translation editing. He has got immense experience in writing about technology, business and finance. His stories have been published and circulated around the globe by various media outlets.

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