The Australian Securities and Investments Commission has submitted a civil procedure against former Blockchain Global Director Liang “Allan” Guo due to alleged infringements of the tasks of directors related to the collapse of ACX exchange.
According to a May 28 press release Of the regulator, ASIC claims that GUO was involved in the mismanagement of customer funds and did not include the correct data during his time at Blockchain Global, the now declared operator of ACX Exchange. The civil fine procedure has been established in the federal court.
ASIC Claims GUO has made false and misleading statements about the handling of ACX customer assets and has violated its duties as director by ensuring that the company maintained sufficient financial documentation.
ACX is said to have abused the funds, which ultimately led to the collapse of the platform at the end of 2019, when users could not withdraw their assets.
Blockchain Global operated the ACX exchange from 2016 to 2019 to the collapse. In February 2022, the company was placed in liquidation and later legal proceedings showed that customer deposits were used to buy crypto assets and mixed in a single pooled fund instead of being held in separate bills.
Asic started his investigation into Blockchain Global in January 2024, after liquidators appointed by the court in November 2023 submitted a detailed report that the company estimated that the company owed more than 58 million Australian dollars to uncovered creditors, including more than 22 million Australse Dollars.
Guo was subject to interim travel security assignments from February 2024, but left Australia in September after the orders had expired.
ASIC confirmed that he has not returned since then. The regulator also considers potential criminal charges with regard to the alleged behavior of GUO, including the use of company funds for personal expenses such as mortgage payments.
ASIC’s Striving for GUO is tuning with a broader regulatory trend in Australia for more extensive supervision of digital asset vlatforms.
In March, the Treasury Department of Australia presented new license requirements for digital asset vlatforms that have customer funds, so that they push under the umbrella of traditional financial services legislation.
According to the proposal, stock exchanges, preservators and stabilecoin -emits are expected to be confronted with new obligations, ranging from redemption protection to transparency rules on token reliefs.
In the meantime, in April in April, the country’s financial intelligence service warned that inactive crypto fairs are still mentioned in the field of register risks that are written out, with reference to concern that they can be exploited by criminals for money and fraud.
