Key Notes
- ASIC sues former Blockchain International director for breaching director duties.
- Allegations embody misuse of ACX Change buyer funds.
- Guo left Australia after the journey ban expired and hasn’t returned.
The Australian Securities and Investments Fee (ASIC) has filed civil proceedings in opposition to Blockchain International’s former director, Mr Liang “Allan” Guo. The submitting states that Guo allegedly dedicated “a number of breaches of his administrators’ duties.”
ASIC disclosed in a press release dated Might 28 that Mr. Guo had breached his duties as a director by conducting transactions involving ACX Change buyer funds.
The regulator additional alleged that he made false and deceptive statements about these transactions and failed to take care of correct monetary information and documentation.
ACX Change commenced operations in 2016 and ceased functioning in December 2019. Blockchain International owned the cryptocurrency alternate, and it traded for over three years earlier than closing.
In the course of the closure interval, customers had been unable to withdraw funds from their accounts. Consequently, the liquidators of Blockchain International have reported that former alternate customers are collectively owed over 20 million Australian {dollars}, equal to $12.8 million, in unsecured creditor claims.
Blockchain International’s Investigations
Following the closure of Blockchain International and the ACX Change, liquidators had been appointed on 11 February 2022. These liquidators reported to the authorities relating to Mr. Guo’s alleged involvement within the shutdown of each corporations. It’s additional alleged that Guo used funds from the alternate to cowl his mortgage funds.
In November 2023, the liquidators disclosed that Blockchain International owed unsecured collectors a complete of 58.6 million Australian {dollars} ($37.7 million). Of this quantity, 22.7 million Australian {dollars} ($14.6 million) consisted of claims from former prospects of the cryptocurrency alternate.
Authorities imposed a travel ban on Guo in the course of the investigation into potential prison offenses associated to his conduct with each corporations. ASIC initiated its investigation in January 2024. The journey restraint orders expired in September 2024, after which Guo was permitted to go away Australia and has not but returned.
Not too long ago, the Australian authorities introduced its dedication to embracing cryptocurrency via a new regulatory framework. This framework goals to foster innovation within the crypto sector whereas guaranteeing strong protections for customers, in the end benefiting the Australian financial system.
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Rose is a crypto content material author with a robust background in finance and tech. She simplifies complicated blockchain and cryptocurrency subjects, providing insightful articles and market evaluation to assist readers navigate the evolving crypto panorama.
