Key Notes
- ASIC sues former Blockchain World director for breaching director duties.
- Allegations embrace misuse of ACX Trade buyer funds.
- Guo left Australia after the journey ban expired and hasn’t returned.
The Australian Securities and Investments Fee (ASIC) has filed civil proceedings in opposition to Blockchain World’s former director, Mr Liang “Allan” Guo. The submitting states that Guo allegedly dedicated “a number of breaches of his administrators’ duties.”
ASIC disclosed in a press launch dated Could 28 that Mr. Guo had breached his duties as a director by conducting transactions involving ACX Trade buyer funds.
The regulator additional alleged that he made false and deceptive statements about these transactions and failed to take care of correct monetary information and documentation.
ACX Trade commenced operations in 2016 and ceased functioning in December 2019. Blockchain World owned the cryptocurrency alternate, and it traded for over three years earlier than closing.
In the course of the closure interval, customers had been unable to withdraw funds from their accounts. Consequently, the liquidators of Blockchain World have reported that former alternate customers are collectively owed over 20 million Australian {dollars}, equal to $12.8 million, in unsecured creditor claims.
Blockchain World’s Investigations
Following the closure of Blockchain World and the ACX Trade, liquidators had been appointed on 11 February 2022. These liquidators reported to the authorities relating to Mr. Guo’s alleged involvement within the shutdown of each firms. It’s additional alleged that Guo used funds from the alternate to cowl his mortgage funds.
In November 2023, the liquidators disclosed that Blockchain World owed unsecured collectors a complete of 58.6 million Australian {dollars} ($37.7 million). Of this quantity, 22.7 million Australian {dollars} ($14.6 million) consisted of claims from former clients of the cryptocurrency alternate.
Authorities imposed a journey ban on Guo through the investigation into potential felony offenses associated to his conduct with each firms. ASIC initiated its investigation in January 2024. The journey restraint orders expired in September 2024, after which Guo was permitted to go away Australia and has not but returned.
Just lately, the Australian authorities introduced its dedication to embracing cryptocurrency by way of a brand new regulatory framework. This framework goals to foster innovation within the crypto sector whereas guaranteeing sturdy protections for customers, in the end benefiting the Australian financial system.
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Rose is a crypto content material author with a powerful background in finance and tech. She simplifies advanced blockchain and cryptocurrency subjects, providing insightful articles and market evaluation to assist readers navigate the evolving crypto panorama.
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