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ACX Exchange fallout: Ex-Blockchain Group director barred from Australia 🚫🛫

ACX Exchange fallout: Ex-Blockchain Group director barred from Australia 🚫🛫

The Australian Securities & Investments Commission (ASIC) Takes Action Against Former Blockchain Global Director

The Australian Securities & Investments Commission (ASIC) has announced that it has obtained interim travel restraint orders against Liang Guo, a former director of Blockchain Global Limited. The orders prohibit Guo from leaving Australia until Aug. 20 or until further notice. This action follows ASIC’s investigation into Guo and two other directors of Blockchain Global, Samuel Xue Lee and Zijang Xu, regarding their involvement in the collapse of the ACX Exchange, a now-defunct Australian crypto exchange.

ACX Exchange’s Misuse of Customer Funds

According to ASIC, the ACX Exchange operated from approximately January 2016 until its closure in December 2019. During this period, the exchange allegedly used $20 million of customer funds to provide a loan to support Blockchain Global. In October 2021, ACX Exchange froze withdrawals for customers and owed creditors up to $50 million.

Liquidators’ Report and Legal Proceedings

In November 2023, liquidators submitted a detailed report to ASIC, highlighting potential breaches of the Corporations Act 2001 by current and former officeholders of Blockchain Global, including Guo, Lee, and Xu. The next hearing for this case is scheduled for Mar. 12. However, it has been reported that Lee and Xu are residing overseas, which complicates the legal proceedings.

Hot Take: ASIC Cracks Down on Mismanagement of Crypto Exchange Funds

The Australian Securities & Investments Commission (ASIC) is taking decisive action against individuals involved in the mismanagement of funds at ACX Exchange. By obtaining interim travel restraint orders against Liang Guo, a former director of Blockchain Global Limited, ASIC is sending a strong message to the crypto community about the importance of financial responsibility and accountability.

With the freezing of customer withdrawals and the significant debt owed to creditors, the collapse of ACX Exchange has had a detrimental impact on the reputation of the cryptocurrency industry in Australia. ASIC’s investigation into Guo and other directors aims to uncover any potential breaches of the law and hold those responsible accountable for their actions.

This case serves as a reminder that regulatory bodies are actively monitoring the crypto space and will not hesitate to take legal action when necessary. As a crypto enthusiast, it is crucial for you to stay informed about the latest developments in regulations and compliance to protect your investments and ensure the long-term viability of the cryptocurrency market.

As the legal proceedings continue, it remains to be seen how this case will unfold and what consequences it will have for Guo, Lee, Xu, and other individuals involved. However, one thing is certain: ASIC’s actions demonstrate their commitment to maintaining trust and integrity in Australia’s financial markets.

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ACX Exchange fallout: Ex-Blockchain Group director barred from Australia 🚫🛫