- ASIC sues ex-ACX director Allan Guo over alleged misuse of customer crypto funds.
- Guo left Australia in 2024 amid $37M debt claims from Blockchain Global creditors.
- ACX pooled user funds without segregation, liquidators reveal in court testimony.
Australia’s top financial regulator, the Australian Securities and Investments Commission (ASIC), has launched civil penalty proceedings against Liang “Allan” Guo. Guo is a former director of Blockchain Global and was a key figure at the now-defunct crypto platform ACX Exchange.
ASIC alleges Guo breached multiple director duties as the platform spiraled and finally collapsed in 2019, specifically pointing to the mishandling of customer assets and a failure to keep proper records.
ASIC Alleges Misleading Statements, Pooled Customer Funds at ACX Exchange by Guo
On May 28, ASIC announced that it had filed a civil case against Guo in connection to events that led to the shutdown of ACX Exchange in December 2019. The regulator claims Guo made false and misleading statements regarding his handling of customer funds and failed to comply with basic recordkeeping requirements as a company director.
The ACX Exchange, operated by Blockchain Global from mid-2016, ceased operations after customers were unable to access their assets. A 2022 liquidator examination revealed that the exchange had pooled customer cash into a single fund, using it to purchase cryptocurrencies without segregating individual accounts.
ASIC’s current case centers on Guo’s alleged breaches of fiduciary duty, including the mismanagement of these pooled funds and providing inaccurate statements about their use. The watchdog emphasized that such conduct, if proven, amounts to a serious violation of corporate governance principles.
Investigation Followed Liquidator Report Showing A$58M Owed; Guo Left Australia After Travel Ban Expired
ASIC kicked off its investigation into Blockchain Global in January 2024. This followed a report submitted by the company’s liquidators, which estimated that as of October 2, 2023, Blockchain Global owed approximately A$58 million (around US$37.3 million) to unsecured creditors.
Guo was restricted from leaving Australia in February 2024 as the regulator assessed whether criminal conduct had occurred, including alleged misuse of funds for personal expenses such as mortgage payments. However, Guo departed the country on September 23, 2024, shortly after the expiration of his travel restraint orders, and has not returned since.
Related: ASIC Drags Kraken Exchange To Court Over its Margin Trading Product
The company, Blockchain Global, is currently in liquidation and has no available contact information. Liquidator Andrew Yeo did not respond to requests for comment. Separately, ASIC is also seeking to appeal a lower court decision in favor of another crypto firm, Block Earner.
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