Australian Legal Action: ASIC Sues Former Blockchain Global Director Over ACX Exchange Collapse

Significant developments in Australian crypto regulation are unfolding as the country’s financial watchdog initiates legal action against a prominent figure in the sector. The Australian Securities and Investments Commission (ASIC) has commenced civil proceedings against Liang “Allan” Guo, the former director of Blockchain Global, the company behind the now-defunct ACX Exchange. This move signals a continued push by regulators to hold individuals accountable for their actions within the cryptocurrency industry, particularly concerning the handling of customer assets.
Why is ASIC Taking Action Against Allan Guo?
ASIC alleges that Allan Guo breached multiple director duties related to his management of ACX Exchange customer funds. The regulator claims Guo made false and misleading statements about these dealings and failed to maintain proper financial records for Blockchain Global. These allegations strike at the heart of responsible corporate governance and the protection of consumer assets in the crypto space.
Key allegations from ASIC include:
- Breaches of director duties concerning the use of customer funds.
- Making false or misleading statements about the handling of these funds.
- Failing to keep adequate books and records for Blockchain Global.
The core issue revolves around the alleged mingling of customer funds. Reports during liquidation proceedings indicated that ACX Exchange pooled customer cash used to buy crypto, mixing it into a single fund rather than keeping it separate.
The Collapse of ACX Exchange and Blockchain Global
Blockchain Global operated the ACX Exchange from mid-2016 until December 2019. The exchange collapsed when customers were unable to withdraw their assets, leading to its eventual liquidation.
The financial impact on former customers is substantial. Liquidators initially estimated over AU$20 million (approximately US$12.8 million) in unsecured creditor claims specifically from ACX Exchange customers. A later report in November 2023 revised the total unsecured creditor claims against Blockchain Global to AU$58.6 million (around US$37.7 million), with AU$22.7 million (about US$14.6 million) of that total attributed to former ACX Exchange customers.
Where is Allan Guo Now?
ASIC began investigating Blockchain Global in January 2024 following the liquidators’ report. The regulator had previously imposed travel restraints on Allan Guo as part of its investigation into potential criminal offenses, including allegations he transferred funds from the collapsed exchange to pay his mortgage.
However, ASIC noted that Allan Guo left Australia in September 2024 after these travel restraint orders expired and has not returned since.
Broader Implications for Australian Crypto Regulation
This legal action against a former director of Blockchain Global highlights the increasing scrutiny on the crypto industry by Australian authorities. It underscores the importance of clear regulations and enforcement to protect investors and ensure accountability among platform operators and directors.
This case is part of a wider regulatory landscape in Australia, where authorities are actively working to establish clearer rules for digital assets. For instance, ASIC is currently seeking permission from the High Court to appeal a separate ruling regarding whether a fintech firm’s fixed-yield earning service constitutes a financial product. These parallel actions demonstrate ASIC‘s commitment to defining and enforcing standards within the evolving crypto ecosystem under the umbrella of Australian crypto regulation.
Summary: Accountability in the Australian Crypto Space
The decision by ASIC to take legal action against Allan Guo, former director of Blockchain Global, over the collapse of ACX Exchange is a significant development. It sends a clear message that regulators are focused on individual accountability for alleged breaches of duties, particularly concerning the handling of customer funds. As Australian crypto regulation continues to develop, cases like this will likely shape expectations for governance and transparency within the digital asset industry.