Australian regulator takes former Blockchain Global director to court

The Australian market regulator has filed a civil procedure against Liang “Allan” Guo, the former director of Blockchain Global.

Guo will face the court on “allegations relating to multiple offenses of the functions of its administrators,” the Australian commission on securities and investments said in a press release of May 28.

The ASIC allegedly alleged that Guo made several violations of the functions of administrators concerning his relations with the Customer Funds of the ACX Exchange, and said that he had made false and misleading statements on transactions and did not maintain appropriate books and files.

The now liquidated overall blockchain operated the ACX Exchange from mid-2016 to December 2019, when it collapsed because customers could no longer withdraw their assets.

During the liquidator’s examinations in 2022, the courts were informed that Acx Exchange took the money invested by its customers to buy a crypto and mixed the funds in a common fund, reported the Sydney Morning Herald at the time.

Liquidators of Blockchain Global estimate that the company owed more than $ 20 million Australian dollars ($ 12.8 million) in unsecured creditors to former ACX Exchange customers, ASIC said.

In November 2023, the liquidators said that Blockchain Global had $ 58.6 million Australian dollars ($ 37.7 million) due to unsuitable creditors. Of this total, 22.7 million Australian dollars ($ 14.6 million) were non -guaranteed creditor complaints received from former customers of the Crypto Exchange.

Guo not in the country, says Asic

The ASIC said it started investigating the Global Blockchain in January 2024 following the report by liquidators.

In relation: Australia describes the Crypto regulatory plan, promises an action on the gambling

Guo was forbidden to leave the country when the regulator investigated if he had committed criminal offenses, in particular the transfer of money from the collapsed scholarship to pay his mortgage.

Guo left Australia in September 2024 after the expiration of travel restraint orders, and he did not return, he noted.

Meanwhile, the ASIC requests the authorization of the High Court to appeal to the decision of a lower court in favor of the Fintech Block Earner company in a separate case.

The regulator said that the Crypto Company’s fixed return profit service was not a financial product.

Review: Bitcoin Bears Eye 69K $, Cz denies the rumors of the WLF “ fix ”: Hodler’s digest