The Australian Securities and Investments Commission (ASIC) has launched civil proceedings against Allan Guo, the former director of the now-defunct crypto firm Blockchain Global, over alleged misuse of customer funds tied to its crypto trading platform, ACX Exchange.
Regulatory Action Years After Exchange’s Collapse
The legal case, announced Wednesday, comes nearly five years after ACX Exchange shut down in December 2019, leaving thousands of users unable to withdraw their crypto or fiat balances. ASIC is alleging that Guo:
- Mishandled client funds on ACX Exchange
- Made misleading statements about those transactions
- Failed to maintain accurate financial records as required by law
“ASIC’s allegations against Mr Guo relate to his dealings with ACX Exchange customer funds, statements made about those dealings and obligations to keep proper books and records,” the regulator said in an official statement.
Liquidators: Blockchain Global Owes Nearly $60M
ACX Exchange was operated by Blockchain Global, which entered liquidation in 2021. Proceedings from 2022 revealed the company owed around AUD $59 million to creditors, with AUD $22.8 million linked directly to ACX Exchange customers.
The court is expected to examine how ACX operated, why funds went missing, and Guo’s role in the alleged mismanagement.
Guo Left Australia in 2024 After Travel Ban Expired
Guo reportedly left Australia in September 2024, shortly after a travel restraint order expired in August. That order had been imposed in February 2023 as ASIC investigated Guo and fellow directors Samuel Xue Lee and Zijiang (Ryan) Xu.
The ASIC probe has focused on executive mismanagement and missing funds, along with failures in compliance, risk management, and fund segregation policies at ACX Exchange.
Crypto Regulation Under the Microscope in Australia
The case underscores growing regulatory scrutiny of crypto operations in Australia, particularly around exchanges handling customer assets. ASIC has vowed to pursue directors who fail to meet their obligations under corporate law, especially when consumer funds are involved.
If ASIC’s civil suit is successful, Guo could face financial penalties, disqualification from managing corporations, and potentially further criminal investigation depending on court findings.