ASIC sues former director of crypto platform owing nearly $60m

Following the collapse of the cryptocurrency platform in 2019, former Blockchain Global director Liang Guo, also known as Allan Guo, is being sued by ASIC over multiple breaches of directors' duties.

Guo was restrained from leaving the country following an interim order in February 2024 until September 20. On 23 September 2024, Guo left Australia following the expiry of the orders and has not yet returned, ASIC noted.

Blockchain Global, currently in liquidation, operated a cryptocurrency exchange platform named ACX Exchange between 2016 and 2019.

The platform collapsed in December 2019 when customers were unable to withdraw funds or cryptocurrency from their accounts - the liquidator, appointed on 11 February 2022, estimated the company owes close $60 million, about $20 million of which is owed to former customers of the exchange.

ASIC has commenced civil penalty proceedings in the Federal Court against Guo in relation to his dealings with customer funds on the basis of statements made about those dealings and failure to his obligations to keep proper books and records.

ASIC began an investigation in January 2024 and found that Guo facilitated a withdrawal of over $333,000 from a Blockchain Global account to buy shares for the benefit of a family trust associated with Guo's family.

Guo has also made separate transactions of up to $1.4 million and $2.6 million from the platform for various reasons, including personal loans.

He was also found to have transferred approximately $1.8 million worth of bitcoins from an investor into his personal wallet in 2019.

In February 2024, Financial Standard reported other related directors, Samuel Xue Lee and Zijang (Ryan) Xu, had since left the country, leaving Guo the only key figure remaining, who now also remains at large overseas.