Rose is a crypto content writer with a strong background in finance and tech. She simplifies complex blockchain and cryptocurrency topics, offering insightful articles and market analysis to help readers navigate the evolving crypto landscape.
Key Notes
- ASIC sues former Blockchain Global director for breaching director duties.
- Allegations include misuse of ACX Exchange customer funds.
- Guo left Australia after the travel ban expired and hasn’t returned.
The Australian Securities and Investments Commission (ASIC) has filed civil proceedings against Blockchain Global’s former director, Mr Liang “Allan” Guo. The filing states that Guo allegedly committed “multiple breaches of his directors’ duties.”
ASIC disclosed in a press release dated May 28 that Mr. Guo had breached his duties as a director by conducting transactions involving ACX Exchange customer funds.
The regulator further alleged that he made false and misleading statements about these transactions and failed to maintain accurate financial records and documentation.
ACX Exchange commenced operations in 2016 and ceased functioning in December 2019. Blockchain Global owned the cryptocurrency exchange, and it traded for over three years before closing.
During the closure period, users were unable to withdraw funds from their accounts. Consequently, the liquidators of Blockchain Global have reported that former exchange users are collectively owed over 20 million Australian dollars, equivalent to $12.8 million, in unsecured creditor claims.
Blockchain Global’s Investigations
Following the closure of Blockchain Global and the ACX Exchange, liquidators were appointed on 11 February 2022. These liquidators reported to the authorities regarding Mr. Guo’s alleged involvement in the shutdown of both companies. It is further alleged that Guo used funds from the exchange to cover his mortgage payments.
In November 2023, the liquidators disclosed that Blockchain Global owed unsecured creditors a total of 58.6 million Australian dollars ($37.7 million). Of this amount, 22.7 million Australian dollars ($14.6 million) consisted of claims from former customers of the cryptocurrency exchange.
Authorities imposed a travel ban on Guo during the investigation into potential criminal offenses related to his conduct with both companies. ASIC initiated its investigation in January 2024. The travel restraint orders expired in September 2024, after which Guo was permitted to leave Australia and has not yet returned.
Recently, the Australian government announced its commitment to embracing cryptocurrency through a new regulatory framework. This framework aims to foster innovation in the crypto sector while ensuring robust protections for users, ultimately benefiting the Australian economy.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
