A South Korean company that claimed to have found the wreck of a Russian warship holding $130 billion in gold said on Thursday it has not verified the existence of any gold, while a financial watchdog said it was probing possible unlawful stock trading.

Shinil Marine said last week it had discovered the wreck of the Dmitrii Donskoi, a Russian armoured cruiser sunk in 1905 after fighting Japanese warships off South Korea’s Ulleung Island, and that a staggering 150 trillion won ($130 billion) of gold was on board.

However, the company backtracked on those claims on Thursday and apologised for having cited unverified news reports carrying the $130 billion figure..

"The reports said the Donskoi held…