Australia’s financial watchdog has launched civil proceedings against Liang “Allan” Guo, the former director of the defunct crypto firm Blockchain Global, over serious allegations linked to his role in the collapse of the ACX Exchange.
In a press release dated May 28, the Australian Securities and Investments Commission (ASIC) accused Guo of multiple breaches of directors’ duties. The charges relate to his handling of customer funds on the ACX platform, as well as alleged false and misleading statements about the firm’s operations and a failure to keep accurate financial records.
Blockchain Global, which ran the ACX Exchange from mid-2016 until its sudden shutdown in December 2019, has since entered liquidation. Customers were left stranded and unable to withdraw their funds after the platform collapsed.
According to court findings during a 2022 liquidator’s examination, ACX reportedly pooled customer funds and used them to purchase cryptocurrency, commingling investor capital without proper segregation. ASIC noted that the company may owe over 20 million Australian dollars (approximately $12.8 million USD) in unsecured creditor claims from former customers.
Further liquidator reports released in November 2023 estimated Blockchain Global’s total debts at 58.6 million AUD ($37.7 million USD), with at least 22.7 million AUD ($14.6 million USD) owed specifically to ACX users.
ASIC confirmed that it began its investigation into the company’s conduct in January 2024 after receiving the liquidators’ findings. The regulator is probing whether Guo committed criminal offences, including the alleged use of exchange funds to pay off his mortgage.
Authorities initially imposed a travel ban on Guo during the investigation, but after the restriction expired, he departed Australia in September 2024 and has not returned.
In a related but separate matter, ASIC is also seeking High Court approval to appeal a recent ruling that favoured fintech startup Block Earner. The lower court had determined that Block Earner’s fixed-yield crypto product did not constitute a financial product—contrary to ASIC’s position.
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