Australian regulator takes former Blockchain Global director to court
The Australian Securities and Investments Commission (ASIC) has initiated civil penalty proceedings against Liang “Allan” Guo, the former director of Blockchain Global, over alleged multiple breaches of his directors’ duties.
The allegations are specifically related to Guo’s management of customer funds at the now-collapsed ACX Exchange, a cryptocurrency platform operated by Blockchain Global from mid-2016 until its failure in December 2019, when customers were unable to withdraw their funds or crypto assets.
ASIC claims that Guo made false and misleading statements about his dealings with customer funds and failed to maintain proper books and records.
The regulator’s investigation was triggered by a 2023 liquidators’ report revealing that Blockchain Global owed approximately A$58 million (about $37.3 million) to unsecured creditors, with over A$22 million of that owed to former ACX Exchange customers.
Guo was previously prohibited from leaving Australia as part of the investigation but departed the country in September 2024 after travel restraint orders expired and has not returned.
The case is currently before the Federal Court, and ASIC is seeking to hold Guo accountable for the alleged breaches. The regulator is also pursuing investigations into other former directors of Blockchain Global, though some are believed to reside overseas.
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This is a serious case highlighting the importance of transparency in crypto exchanges. ASIC's actions show regulators are cracking down on mismanagement of customer funds. Hopefully this serves as a warning to other platforms to maintain proper financial records and accountability. The crypto industry needs more trust to grow.