The Australian Securities and Investments Commission (ASIC) has filed a lawsuit against Mr. Liang (Allan) Guo, a former director of Blockchain Global Ltd, a crypto exchange platform, for alleged mismanagement and misuse of user funds.
An official announcement revealed that Blockchain Global, also known as ACX Exchange, ceased operations around December 2019 following reports from customers of withdrawal failures. According to liquidators, over $20 million in estimated unsecured creditor claims have been reported from affected customers.
The platform operated from mid-2016 until its collapse in December 2019. Following the appointment of liquidators to Blockchain Global in February 2022, a comprehensive report was submitted to the Australian regulator in November 2023. This highlights possible compliance issues involving former and current executives, such as Mr. Guo.
Blockchain Global Owes Nearly $59M
Furthermore, the report disclosed that Blockchain Global owed nearly $59 million to unsecured creditors as of October 2023, including $22.75 million from former ACX Exchange clients. ASIC began investigating in January 2024.
Meanwhile, as soon as his travel restrictions were lifted on September 23, 2024, Mr. Guo left Australia and has not been seen back since. ASIC alleges that Mr. Guo’s conduct involved the improper handling of the platform’s customer funds, the making of inaccurate statements about these dealings, and non-compliance with record-keeping obligations.
Regulator Filing Lawsuits
Over the years, cases like this are not entirely new to the crypto space. Regulators filed lawsuits against an exchange founder and co-founder over practices of illicit activities, leaving users and investors devastated. These executives use investor funds to live a luxurious life, purchase homes and fast cars, and travel in first class.
On May 21, 2025, the United States Securities and Exchange Commission (SEC) filed a lawsuit against Unicoin, a crypto investment platform, and its executives. The agency alleged that the executives gave misleading statements regarding the company’s digital assets.
Furthermore, the false claims convinced people to invest more than $100 million without knowing the whole story. Similarly, Digital asset custodian BiT Global initiated a $1 billion legal action against crypto exchange giant Coinbase for its intention to delist the Wrapped Bitcoin (WBTC) token.
The latest lawsuit highlights the need for robust oversight to safeguard Australian investors and restore confidence in the system. Meanwhile, former users of the defunct platform are calling for swift justice and the recovery of assets.
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