The fervor for trading gold and silver continues to intensify, driven by their stable safe-haven attributes and consistently rising market trends. Trading platforms under the "Huatong" app ecosystem, affiliated with the Shanghai Huatong Silver International Trading Center (referred to as the Huatong Silver Trading Center), gained public attention through promotional tactics such as low entry barriers, high-return promises, and backing by listed companies, capitalizing on the bullish silver market. However, what appeared to be a promising opportunity to profit from silver ultimately turned into an investment nightmare for countless individuals.

Investigations reveal that complaints regarding "Huatong" platforms are widespread across multiple consumer rights channels. Allegations include exaggerated advertising to attract customers, engaging in disguised futures trading without proper licenses, and forcing investors to accept physical delivery of silver after incurring losses to evade liability.

In 2025, the silver market entered a phase of rapid growth, with annual gains reaching as high as 196.84%, significantly outperforming gold during the same period. This made silver a star performer in capital markets, leading many retail investors to pursue profits through silver accumulation and trading.

Amid this trend, numerous silver trading platforms emerged. Among them, spot commodity trading apps under the "Huatong" umbrella quickly attracted a large number of investors with aggressive marketing campaigns promoting "low thresholds, high returns, and listed company backing." Fang Chen (a pseudonym) was one such investor.

Fang Chen recalled being drawn in by advertisements for the China Silver App on short-video platforms, which highlighted features like "minimum investment of just 5 yuan, suitable for beginners," "cash rewards upon registration," and "backing by Hong Kong-listed company China Silver Group." The low entry barrier and perceived credibility led Fang Chen to download the app and open an account within minutes.

"For the first two months, trading went remarkably smoothly. I invested over 20,000 yuan and earned nearly 100,000 yuan in profits," Fang Chen recounted. Encouraged by these early gains, he decided to increase his investment, transferring all his savings and prior profits—totaling 70,000 yuan—into the platform.

However, the situation reversed soon after. Fang Chen noted that market fluctuations became extreme and liquidation events frequent. "Even when international silver prices were rising, the platform’s quotes showed abnormal volatility, often leading to sudden liquidations and consecutive losses," he explained. Customer service offered vague responses, citing factors such as "financial website quotes and the platform’s procurement channels," which Fang Chen interpreted as evidence of the platform’s ability to manipulate prices. Additionally, he found the service fees—sometimes as high as 20% per trade—unbearable.

Similar experiences have been reported by other investors on consumer complaint platforms. Many allege that the platform’s price movements, while generally aligned with international trends, exhibit exaggerated volatility and come with exorbitant fees ranging from 15% to 20%. Some also reported technical issues like transaction delays, raising suspicions of fraudulent activity.

After repeated losses, Fang Chen’s funds were entirely depleted. The platform offered compensation in the form of cash vouchers usable only within the app, which he viewed as a tactic to lure investors into a cycle of continuous losses. "When I tried to quit after major losses, the platform pushed 3,000-yuan vouchers to entice me back. But as soon as I started making small profits again, the benefits stopped," he said.

Fang Chen’s case is not isolated. Numerous investors have shared nearly identical experiences on social media and维权 channels. Investigations show that, in addition to the China Silver App, several highly similar "shell" platforms exist, including Huatong Silver App, Palm Silver App, Tianlong Silver App, and Daily Platinum Silver App. Despite different names, these apps share identical operating entities, interfaces, trading rules, and marketing strategies.

Attempts to download and test these apps were often blocked by messages stating that new registrations were suspended or systems were under maintenance. When asked about registration availability, customer service only replied that the platform was "under maintenance," with no clear timeline for restoration. Several apps were also flagged in Android app stores for "potential security risks" or "incomplete qualifications," though existing users reportedly continued trading without interruption.

Legal expert Wang Deyue noted that operating multiple shell platforms through non-public referral links is a deliberate strategy to disperse complaints and regulatory scrutiny, making oversight difficult. This approach is typical of non-compliant operations aimed at evading supervision.

One investor, Mr. Li (a pseudonym) from Zhejiang Province, lost over 70,000 yuan after investing nearly 80,000 yuan in the Palm Silver App, another shell platform under the same group. Like others, he experienced abnormal price fluctuations, high fees, and frequent liquidations.

Wang Deyue further pointed out that these platforms, while marketed as "spot silver trading," actually offer standardized silver and platinum products in fixed weights, allow long and short positions, and permit position closures through offsetting transactions without physical delivery. Such practices amount to disguised futures trading, which is illegal without approval from the State Council or the China Securities Regulatory Commission. These operations violate the Futures and Derivatives Law and relevant regulations, rendering the transactions invalid.

Notably, futures trading is strictly regulated in China, and operators must hold valid licenses issued by regulatory authorities. Business registration records show that the Huatong Silver Trading Center, established in July 2015, is only authorized to provide venues and supporting services for spot precious metal trading. It does not appear on the official list of licensed futures companies. The center is 40% owned by China Silver Group and 54% controlled by Shanghai Huatong Platinum Silver Trading Market Co., Ltd., whose business scope also excludes futures trading qualifications.

Despite inquiries sent to the Huatong Silver Trading Center, its parent company, and China Silver Group, no responses were received by the time of publication. Shortly after the inquiries were made, several of the apps, including China Silver App and Palm Silver App, were no longer searchable in the App Store, suggesting possible removal.