Australian Court Restricts Liang Guo, Former Director of Blockchain Global, from Leaving the Country
Authorities in Australia have prevented Liang Guo, the former director of Blockchain Global, a now-defunct cryptocurrency firm, from leaving the country. The Federal Court of Australia issued a court order on February 28, which mandates Guo to surrender all his passports and prohibits him from attempting to leave Australia until August 20. The Australian Securities and Investments Commission (ASIC) secured an interim travel restraint order against Guo as part of its ongoing investigation into the collapse of a cryptocurrency exchange operated by Blockchain Global.
Liang Guo’s Travel Restrictions
The Federal Court of Australia has ordered Liang Guo, the former director of Blockchain Global, to surrender all his passports and stay in Australia until August 20. Guo is not allowed to leave the country or attempt to do so. Failure to comply with these travel restrictions may result in legal consequences for Guo.
The court issued these travel restraint orders against Guo based on concerns that he may leave the country while ASIC continues its investigation into his alleged involvement in the collapse of a cryptocurrency exchange operated by Blockchain Global.
Guo was not present during the court hearing where the orders were issued. He will make his next court appearance on March 12.
Allegations Against Liang Guo
Liang Guo, as the director of Blockchain Global, is facing serious allegations related to misappropriation of funds and unauthorized transfers. The specific allegations include:
- Transferring $1.69 million (2.6 million AUD) from a bank account holding ACX Exchange investor funds for personal investments.
- Transferring 21.11 Bitcoin (currently valued at approximately $1.3 million) to a private wallet under his control in 2019.
These allegations highlight the severity of Guo’s actions and the potential harm caused to investors and stakeholders.
About Blockchain Global and ACX Exchange
Blockchain Global was the operator of ACX Exchange from January 2016 to December 2019. However, the cryptocurrency firm collapsed in early 2020 and still owes creditors $37 million. Liquidators were appointed to oversee the winding down of ACX Exchange in February 2022.
ASIC is currently investigating Liang Guo, along with other directors of Blockchain Global, Xue Lee, and Zijang Xu, for potential breaches of corporate law during the operations of ACX Exchange. Lee and Xu are believed to reside overseas, making Guo the primary person of interest remaining in Australia.
The court’s decision to restrict Guo’s travel may increase the chances of recovering funds for creditors and stakeholders affected by the collapse of Blockchain Global and ACX Exchange.
Hot Take: Liang Guo Detained – A Step Towards Accountability
The detention of Liang Guo, the former director of Blockchain Global, in Australia is a significant development in holding individuals accountable for their actions in the cryptocurrency industry. The court’s travel restrictions demonstrate that authorities are taking these allegations seriously and are committed to investigating potential wrongdoing.
This case serves as a reminder that transparency and proper governance are crucial in the crypto space. It highlights the importance of regulatory oversight to protect investors and maintain trust in the industry.
As the investigation unfolds and more details emerge, it will be interesting to see how this case impacts future regulations and enforcement actions within the cryptocurrency sector.
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