ASIC Cracks Down: Former Blockchain Global Director Faces Court Over ACX Exchange Collapse
In a significant move signaling heightened regulatory scrutiny on the Australian crypto landscape, the Australian Securities and Investments Commission (ASIC) has initiated civil penalty proceedings against Mr. Liang (Allan) Guo, a former director of Blockchain Global Ltd. The allegations stem from multiple breaches of his directors' duties related to the collapse of the ACX Exchange cryptocurrency platform.
The ACX Exchange, which operated from mid-2016, faced a critical meltdown around December 2019 when customers found themselves unable to withdraw their funds or cryptocurrency. Liquidators of Blockchain Global now estimate that over $20 million in unsecured creditor claims are owed to former ACX Exchange customers, highlighting the substantial impact on individuals within the crypto community.
ASIC's case against Mr. Guo focuses on serious allegations concerning his handling of ACX Exchange customer funds, the accuracy of statements made regarding these dealings, and a failure to maintain proper books and records—fundamental obligations for any company director.
Background to the Proceedings:
Blockchain Global entered liquidation on 11 February 2022. A detailed report lodged by the Liquidators with ASIC on 1 November 2023 outlined potential breaches of the Corporations Act by former officeholders, including Mr. Guo. ASIC commenced its investigation in January 2024. Of particular note, Mr. Guo departed Australia on 23 September 2024, following the expiry of travel restraint orders, and has not yet returned.