ASIC Sues Former Blockchain Global Director Over $20 Million Misuse

Liang Guo, a former director of Blockchain Global, is facing legal action from the Australian Securities and Investments Commission (ASIC) over the collapse of the ACX Exchange. The lawsuit, filed on May 28, 2025, alleges that Guo misused over $20 million in customer funds, kept inaccurate financial records, and made false statements during his time at the company. These actions are said to have violated the Corporations Act, which outlines strict rules for financial conduct in Australia.
Blockchain Global managed the ACX Exchange from 2016 to December 2019, allowing users to buy, sell, and store cryptocurrency. However, by late 2019, customers began experiencing difficulties withdrawing their funds, leading to the exchange's shutdown. Liquidators later revealed that the company owed $20 million to former ACX Exchange customers, part of a larger unpaid debt of $58 million to unsecured creditors.
ASIC's investigation, which began in January 2024, uncovered financial irregularities at Blockchain Global. A report from November 2023 indicated that the company had commingled customer funds with its own and moved money inappropriately. Guo is accused of transferring $1.69 million from an account intended for ACX investors into his personal funds and moving 21.11 Bitcoin, worth approximately $1.3 million, to a wallet he had personal access to. Guo claimed that wallet information for the company’s crypto holdings, valued at over $100 million, went missing after his laptop was stolen in China in 2019. However, the lack of a police report supporting this claim has raised doubts about its validity.
In response to these findings, ASIC prevented Guo from traveling outside Australia by blocking his passport in February 2024. Although the travel ban was lifted after August 20, 2024, Guo left the country on September 23, 2024, with no plans to return. The failure of ACX Exchange is considered one of the nation’s first major cases of a crypto exchange shutting down, leaving thousands of customers unable to access their funds. This case has drawn comparisons to other well-known crypto frauds, such as the issues at FTX, where customer funds were also misused.
Samuel Xue Lee and Zijang Ryan Xu, both directors of Blockchain Global, are also under investigation by ASIC and are cited in the case. The regulator is seeking to recover the financial losses incurred by ACX Exchange users and hold Guo accountable for his actions. The legal proceedings against Guo highlight the increasing scrutiny that the cryptocurrency industry is facing from regulatory bodies. As digital currencies gain popularity, the need for robust regulatory frameworks to protect investors and ensure market integrity becomes more pressing. This case serves as a reminder that those involved in the cryptocurrency industry must adhere to strict standards of transparency and accountability to avoid regulatory consequences.
The collapse of ACX.io and the subsequent legal action against Guo underscore the risks associated with investing in the cryptocurrency market. While digital currencies offer the potential for significant returns, they also come with a high degree of volatility and uncertainty. Investors must conduct thorough due diligence and carefully evaluate the risks and rewards associated with any investment in the cryptocurrency space. The case against Guo serves as a cautionary tale for both investors and industry participants, emphasizing the importance of transparency, accountability, and regulatory compliance in the cryptocurrency market.

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