Blockchain Global Faces Investigation by Australia’s ASIC
Australia’s corporate regulator, the Australian Securities and Investments Commission (ASIC), has launched an investigation into bankrupt crypto company Blockchain Global. This comes after two of the company’s directors, Allan Guo, Sam Lee, and Ryan Xu, were allegedly involved in failed crypto investment schemes. The ASIC will examine possible violations of the Corporations Act, including breaches of director obligations and suspicious transactions.
HyperVerse Scam Linked to Blockchain Global
The ASIC’s investigation also coincides with revelations that Blockchain Global may have connections to the HyperVerse cryptocurrency investment scam. The scam, which resulted in a $1.3 billion loss in 2022, was connected to directors Lee and Xu. The liquidators of Blockchain Global discovered debt transactions totaling $500,000 in the company’s bank accounts, which are being investigated for any potential ties to HCash, a cryptocurrency associated with the Hyper investment scams.
The Downfall of Blockchain Global and Rise in Crypto Fraud
Blockchain Global was an Australian blockchain startup that went bankrupt in 2021, owing creditors $58 million. The collapse of the company highlighted the vulnerabilities and lack of security in the crypto sector. Additionally, Rodney Burton, a crypto promoter linked to the HyperVerse scam, was arrested in the US for operating an unlicensed money transmission business. Despite concerns raised by international regulators about the fraudulent nature of HyperVerse, ASIC faced criticism for not issuing a warning against it.
Hot Take: Concerns Mount as Crypto Fraud Continues
The investigation into Blockchain Global by ASIC underscores the ongoing issue of crypto-related frauds and scams. With losses from scams, hacks, and exploits reaching $1.35 billion in 2023 alone, it is clear that the crypto sector remains vulnerable to criminal activities. Regulators like ASIC play a crucial role in investigating and holding accountable those involved in fraudulent schemes. However, the lack of timely warnings and oversight raises concerns about the effectiveness of regulatory measures in protecting crypto investors. As the industry continues to grow, it is imperative for regulators to prioritize the security and integrity of the crypto market.
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