The Australian Securities and Investments Commission (ASIC) has initiated civil proceedings against Liang “Allan” Guo, a former director of Blockchain Global, concerning alleged breaches of his directors’ duties. ASIC accuses Guo of misconduct regarding ACX exchange customer funds, issuing false statements, and failure to maintain appropriate books and records.
The ill-fated Blockchain Global managed the ACX exchange from mid-2016 until its collapse in late 2019, which resulted in customer assets’ unavailability. As per the Sydney Morning Herald, ACX exchange invested the customer’s cash in crypto and pooled these funds into one shared fund.
ASIC approximates that Blockchain Global owes upwards of $12.8 million USD (20 million AUD) in unfulfilled creditor claims to previous clients of the ACX Exchange. In late 2023, the liquidators reported that Blockchain Global owed around $37.7 million USD (58.6 million AUD) to unsecured creditors, out of which $14.6 million USD (22.7 million AUD) were unsecured claims from former customers of the crypto exchange.
Amidst an ongoing ASIC investigation, Guo was prohibited from leaving Australia. However, he left the country in September 2024 once his travel restraint orders expired and has not returned since.
In conclusion, the ASIC’s aim to hold Guo accountable for his alleged misconduct underlines the firm commitment of regulators worldwide to ensure ethical practices in the fintech and blockchain sector. It sends a clear message that infringements will not be tolerated.
