The Australian Securities and Investments Commission (ASIC) has launched civil proceedings against Liang “Allan” Guo, former director of the now-defunct Blockchain Global, over serious misconduct related to the collapse of the ACX Exchange.
ASIC Alleges Multiple Breaches of Directors’ Duties
In a May 28 press release, ASIC accused Guo of multiple violations of corporate duties, including:
- Mishandling customer funds of the ACX Exchange
- Making false and misleading statements
- Failing to maintain proper financial records
The regulator alleges that customer funds were pooled and misused, with no proper segregation or tracking—an action that ultimately led to the exchange’s collapse in December 2019.
Millions Owed to Creditors After ACX Exchange Failure
Blockchain Global, the parent firm of ACX, was placed in liquidation after customers reported being unable to withdraw funds.
According to ASIC and prior court filings:
- Over AU$20 million ($12.8 million) in unsecured creditor claims are linked to former ACX users.
- As of November 2023, the total creditor debt of Blockchain Global reached AU$58.6 million ($37.7 million), with AU$22.7 million ($14.6 million) owed specifically to exchange customers.
Guo Left Australia After Travel Ban Expired
ASIC began formally investigating Blockchain Global in January 2024, following alarming findings in the liquidators’ reports. Among the allegations: Guo used exchange funds to pay personal expenses, including a mortgage.
While Guo was initially barred from leaving Australia, he departed in September 2024 after the travel restraint lapsed and has not returned, ASIC noted.
ASIC Pushes Forward on Crypto Oversight
The case against Guo comes amid broader regulatory scrutiny in Australia’s crypto sector. ASIC is also pursuing a separate appeal related to Block Earner, a fintech firm that allegedly offered a fixed-yield crypto product without proper licensing.
The Guo lawsuit highlights ASIC’s intensified stance on director accountability and consumer protection in the crypto industry, as the country ramps up its regulatory enforcement.