Australia’s top corporate regulator is turning its focus to cryptocurrency accountability, as the Australian Securities and Investments Commission (ASIC) has startedcivil penalty proceedings against Liang (Allan) Guo, a former director of Blockchain Global Ltd. The company, now in liquidation, operated the now-defunct cryptocurrency trading platform known as the ACX Exchange.
The lawsuit stems from allegations that Mr. Guo failed in his duties as a director during the years leading up to ACX Exchange’s collapse in late 2019. According to ASIC, Guo’s conduct included mismanagement of customer funds and a failure to maintain accurate business records, potentially violating key sections of the Corporations Act.
Between 2016 and 2019, Blockchain Global ran the ACX Exchange, a digital currency trading platform that allowed customers to buy, sell, and store cryptocurrencies. While the exchange initially grew in popularity among Australian crypto users, problems emerged in late 2019 when customers began reporting they could no longer access or withdraw their funds.
By December 2019, the platform had effectively collapsed. Withdrawals were halted without warning, and user accounts were frozen. Since then, customers have struggled to recover their assets.
Liquidators estimate that Blockchain Global owes more than $58 million to unsecured creditors. Of this, approximately $22.7 million comes directly from former ACX Exchange users who lost access to their funds. These figures were submitted in a report lodged with ASIC on 1 November 2023, nearly a year after the liquidators were appointed.
ASIC’s civil case, filed in the Federal Court, focuses specifically on Mr. Guo’s alleged misconduct during his time with Blockchain Global. The regulator claims that Guo engaged in activities that breached his legal responsibilities as a director—particularly concerning the handling of customer funds and recordkeeping obligations.
ASIC asserts that Guo was involved in decisions and representations regarding customer assets that were misleading and failed to reflect the company’s true financial position. Furthermore, the regulator claims the company did not keep proper books and records, a core responsibility under Australian corporate law.
These allegations follow a detailed investigation that ASIC began in January 2024, after reviewing the liquidators’ report filed the previous November. That report outlined several suspected violations by current and former directors, with Mr. Guo at the center of many of those claims.
ASIC’s decision to pursue civil penalties in Federal Court marks a serious escalation in regulatory oversight of the cryptocurrency sector in Australia. If the court rules against Mr. Guo, he could face severe financial penalties, potential disqualification from managing corporations, and other legal consequences under the Corporations Act.
The case also highlights ongoing concerns within the regulatory community about how crypto platforms manage customer funds and internal governance. While the crypto industry operates largely outside traditional financial systems, regulators are increasingly demanding transparency, accountability, and compliance with established laws.
Blockchain Global was once seen as a pioneer in Australia’s crypto space. The ACX Exchange attracted thousands of users at its peak, offering a convenient way to trade and hold cryptocurrencies domestically. But its sudden breakdown revealed critical weaknesses in its operational and financial structures.
Many users have since expressed frustration over the lack of communication and delays in asset recovery. For several, the ACX debacle served as a harsh reminder of the risks associated with entrusting crypto holdings to centralized platforms without regulatory guarantees.
ASIC’s case against Mr. Guo is part of a wider trend in Australia toward more stringent regulation of digital asset businesses. In recent years, the regulator has repeatedly warned crypto firms about the need to comply with corporate and financial laws, especially as more Australians engage in crypto trading.
While cryptocurrency itself remains legal and widely used in the country, platforms that deal in digital assets are under increasing scrutiny. The ACX case is likely to serve as a precedent for future enforcement actions, particularly in cases where user funds have been mismanaged.
As ASIC’s lawsuit moves forward, Mr. Guo will have an opportunity to defend against the claims in Federal Court. The process is expected to shed more light on the inner workings of Blockchain Global and the decisions that led to ACX Exchange’s downfall.
Legal experts suggest this case could influence the broader digital asset sector by setting new expectations for how crypto platforms operate in Australia. If the court agrees with ASIC’s allegations, it could pave the way for similar actions against other directors in the crypto space who may have breached their duties.
For former ACX customers still waiting to recover their funds, the case also holds emotional and financial significance. It represents one of the few paths toward justice and accountability after years of uncertainty and loss.
Steven is an explorer by heart – both in the physical and the digital realm. A traveler, Steven continues to visit new places throughout the year in the physical world, while in the digital realm has been instrumental in a number of Kickstarter projects. Technology attracts Steven and through his business acumen has gained financial profits as well as fame in his business niche. Send a tip to: 0x200294f120Cd883DE8f565a5D0C9a1EE4FB1b4E9
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