Core Viewpoint - The surge in international gold prices, which exceeded $5,500 per ounce, has led to a liquidity crisis for Shenzhen-based jewelry company Jie Wo Rui, causing significant investor panic and withdrawal issues [1][34][36]. Group 1: Company Overview - Jie Wo Rui Jewelry Co., established in June 2014 with a registered capital of 11 million yuan, initially operated as a typical gold raw material trader, sourcing and supplying gold to small merchants [1][36]. - The company has shifted its business model towards retailing precious metals and opened gold pre-order trading to retail investors, increasing its risk exposure [1][36]. Group 2: Business Operations - Jie Wo Rui operates both online and offline, with physical stores in Shenzhen and multiple online platforms, including "Jie Wo Rui Jewelry," "Long Ye Jin," and "Jin Cheng Jin Shi Jie" [2][38]. - The three online platforms serve different functions but are interconnected, allowing users to transfer balances and products between them [40]. Group 3: Crisis Development - On January 19, 2023, the company faced a liquidity crisis, leading to a significant number of investors attempting to withdraw funds, resulting in a chaotic scene at Jie Wo Rui's stores [10][46]. - By January 26, the total outstanding balance on the platform was approximately 13.392 billion yuan, affecting investors from 11 provinces [13][50]. - The company announced it was insolvent and had applied for government oversight of its assets on January 25 [50][54]. Group 4: Investor Response - Investors were initially offered limited withdrawal options, which led to further dissatisfaction and panic among them [49][57]. - Many investors reported that the company's operations were normal prior to the crisis, citing low fees and trust in the owner, Zhang Zhiteng [45][46]. Group 5: Regulatory and Legal Issues - The company has been accused of operating a high-leverage trading model without proper licensing, which is considered a form of unregulated futures trading [60]. - As of January 28, local government authorities have intervened, urging the company to fulfill its responsibilities towards investors [62].