- ASIC has announced it is launching civil proceedings against Allan Guo, the former director of Blockchain Global, which operated the now defunct crypto exchange, ACX Exchange.
- ACX Exchange collapsed in 2019 leaving customers over AU$20 million out of pocket. The allegations against Guo relate to his dealings with customer funds and failure to keep accurate records.
- ASIC was spurred into action over Blockchain Global following reporting from The Guardian linking the company to known scams.
Australia’s financial regulator, ASIC, has announced it will be pursuing civil proceedings against Liang ‘Allan’ Guo, the former director of Blockchain Global, the company behind the now defunct cryptocurrency exchange, ACX.
ASIC (Australian Securities and Investments Commission) alleges Guo failed to fulfil his director’s duties on multiple occasions, contributing to significant financial losses for customers of ACX and other creditors. The liquidators appointed following ACX’s collapse estimate the exchange has outstanding debts of over AU$58 million, of which AU$22.7 million is owed to former ACX customers. Guo’s case will be heard in the Federal Court.
ASIC said the allegations against Guo relate to his “dealings with ACX Exchange customer funds, statements made about those dealings and obligations to keep proper books and records.”
ACX launched in 2016 and collapsed in December 2019. Following its collapse customers were left unable to withdraw funds. In September 2024, Guo fled Australia after his travel restraint order expired and he has not returned to the country since.
Related: ASIC Heads to High Court for Clarity on Block Earner’s Licence-Free Crypto Yields
ASIC Initially Declined to Investigate Blockchain Global
ASIC’s investigation into Blockchain Global began in January 2024, after it had previously declined to investigate the company in 2022 following a referral from the company’s liquidators in 2022.
By the start of 2024 though, the regulator decided it probably should take a closer look at Blockchain Global after The Guardian published a report in 2023 showing that the company had close ties to a notorious crypto scam known as the Hyperverse.
The Guardian’s reporting suggested that two of Blockchain Global’s directors, Sam Lee and Ryan Xu, were key players behind the Hyperverse scam, which cost investors a total of over US$1.3 billion dollars (AU$2b).
Related: ASIC Probes Crypto Firm Blockchain Global Collapse
Both Lee and Xu deny these links. However significant evidence suggests they were involved, including their appearances at the Hyperverse launch event in 2021 alongside the project’s fake CEO, who turned out to be a paid actor named Stephen Reece Lee who played no part in running the business. Hyperverse has in turn been linked to a large web of other scam crypto projects, including HCash, Collinstar Capital, and of course, Blockchain Global.
Sam Lee claims any allegations that he has been involved in running crypto scams are false, telling The Guardian via WhatsApp that “people on the internet continues [sic] to make things up.”
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