Global: Australian Regulator Sues Former Blockchain Global Director Over ACX Exchange Collapse

Australia’s financial watchdog, the Australian Securities and Investments Commission (ASIC), has initiated civil proceedings against Liang “Allan” Guo, the former director of Blockchain Global, over alleged misconduct tied to the defunct ACX Exchange.

In a statement released on May 28, ASIC accused Guo of multiple breaches of his directors’ duties. These include misusing customer funds associated with the ACX Exchange, providing false and misleading statements, and failing to maintain accurate corporate records.

Blockchain Global, now in liquidation, operated the ACX Exchange between 2016 and 2019. The platform collapsed in late 2019, leaving customers unable to access their digital assets. Court testimony during a 2022 liquidation inquiry revealed that customer deposits were allegedly pooled into a single fund used for crypto purchases, a practice that breached basic fiduciary standards.

According to ASIC, the firm owes more than AU$20 million (approximately $12.8 million) in unsecured claims to former ACX users. A broader audit in November 2023 by the liquidators found that Blockchain Global had total outstanding unsecured liabilities amounting to AU$58.6 million ($37.7 million), including AU$22.7 million ($14.6 million) owed to crypto customers.

Guo Departed Australia Amid Ongoing Investigations

ASIC began formal investigations into Blockchain Global in January 2024, prompted by findings from the liquidation process. Guo was temporarily subject to a travel ban amid concerns he may have committed criminal offences, including allegations that he used customer funds to pay his personal mortgage.

However, ASIC confirmed that Guo left Australia in September 2024 following the expiration of the travel restraint order and has not returned.

Broader Regulatory Scrutiny of Crypto Sector

The case against Guo comes as ASIC intensifies its scrutiny of the crypto industry. The regulator is concurrently seeking to challenge a lower court ruling that favored fintech firm Block Earner, which had offered fixed-yield crypto products. ASIC contends that these services constituted unlicensed financial products, underscoring the agency’s wider crackdown on regulatory non-compliance in the digital asset space.

The developments mark a growing assertiveness by Australian authorities in bringing accountability to the crypto sector, especially in cases where consumer losses have been significant.