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Australia’s corporate regulator, the Australian Securities and Investments Commission (ASIC), has initiated civil proceedings against Liang “Allan” Guo, the former director of the now-liquidated Blockchain Global. Guo faces allegations of multiple breaches of his directors’ duties, stemming from his handling of customer funds at the ACX Exchange, a cryptocurrency exchange operated by Blockchain Global from mid-2016 to December 2019.
The ASIC press release details allegations of false and misleading statements made by Guo concerning his management of ACX Exchange funds, along with a failure to maintain adequate financial records. The collapse of Blockchain Global in December 2019 left customers unable to withdraw their assets. Liquidator examinations in 2022 revealed that ACX Exchange commingled customer funds, using them to purchase cryptocurrency and investing them in a single pooled fund.
This practice has resulted in significant financial losses for former ACX Exchange customers. ASIC reports that Blockchain Global owes over AU$20 million (approximately US$12.8 million) in unsecured creditor claims to these customers, representing a portion of the AU$58.6 million (approximately US$37.7 million) owed to unsecured creditors overall.
ASIC launched its investigation into Blockchain Global in January 2024, following the liquidators’ report. Guo was initially prevented from leaving Australia while the regulator investigated potential criminal offenses, including allegations of using funds from the collapsed exchange to pay his mortgage. However, Guo departed Australia in September 2024 after travel restrictions expired and has not returned.
This case highlights the complexities and risks associated with cryptocurrency exchanges and the importance of robust regulatory oversight. The ASIC’s pursuit of legal action against Guo underscores its commitment to protecting investors and ensuring accountability within the Australian financial system. The ongoing legal proceedings will determine the extent of Guo’s liability for the losses suffered by ACX Exchange customers. Separately, ASIC is also seeking to appeal a lower court’s decision in favor of fintech firm Block Earner, challenging the classification of its fixed-yield earning service.
