Travel Ban on Ex-Blockchain Global Head in $58M Meltdown
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Travel Ban on Ex-Blockchain Global Head in $58M Meltdown

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1 month ago

Australian authorities have banned a former director of the failed ACX crypto exchange from leaving the country as they investigate missing funds.

Travel Ban on Ex-Blockchain Global Head in $58M Meltdown

The Australian Securities and Investments Commission (ASIC) has secured interim travel restraint orders against former Blockchain Global Limited director Liang "Allan" Guo, barring him from leaving the country as the corporate regulator investigates the collapse of the crypto company.

The orders, granted by the Federal Court on February 20, prevent him from departing Australia until at least August 20, 2024. He has also been compelled to surrender any passports in his possession to authorities.

The ban comes as ASIC probes the implosion of ACX, a cryptocurrency exchange run by Blockchain Global, which collapsed in early 2020 with debts of AUD$58 million owed to creditors. Liquidators brought in to wind up the company flagged potential breaches of corporation law by directors in a report filed last November.

Alongside Mr. Guo, the regulator is looking into fellow directors Samuel Lee and Ryan Xu over their stewardship of ACX Exchange prior to its downfall after three years of operations. Both Mr. Lee and Mr. Xu are considered to have left the country following the exchange's collapse.

Justice Catherine Button endorsed ASIC's application for the urgent travel restraint, noting the allegations that investors' funds had been misused under Mr. Guo's watch for personal expenses, including mortgage repayments. She described the claims as "very serious."

With key suspects residing overseas, the court determined the former director posed a flight risk and his presence was required for questioning.

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