Former Blockchain Global Director Barred from Leaving Australia Amid $37M Collapse Investigation
Summary:
Liang "Allan" Guo, former director of Australian cryptocurrency company Blockchain Global, is barred from leaving Australia as part of an ongoing probe into the company's $37 million collapse. The Australian Securities and Investments Commission (ASIC) alleges that Guo misused investor funds and Bitcoin for personal investments. Other former directors, Xue "Sam" Lee and Zijang "Ryan" Xu, are also under investigation for possible corporate law breaches.
Liang "Allan" Guo, ex-director of Australian cryptocurrency company Blockchain Global, has been prohibited from exiting Australia temporarily because of an investigation related to the company's downfall, which left its creditors owed $37 million (58 million Australian dollars). The Australian Securities and Investments Commission (ASIC) obtained an interim order from the Federal Court of Australia that limits Guo's travel, effective from February 20. Guo, a citizen of China, is required to surrender any passports in his possession and is not allowed to attempt leaving Australia until August 20. The decision was made during a hearing in which Guo was not present, hence he couldn't immediately respond. Guo's next court appearance is scheduled for March 12.
The ASIC made the request for the travel restraint order due to apprehensions that Guo might exit the country while the probe is still in progress. In the words of the regulatory authority, the former Blockchain Global director is facing restriction from leaving Australia pending the ongoing investigation into the company's fall.
Federal Court's Justice Button expressed that the allegations against Guo are highly grave. The ASIC claims that Blockchain Global, under Guo's leadership, operated the ACX Exchange crypto platform between January 2016 and December 2019. Guo is accused of transferring $1.69 million (2.6 million Australian dollars) from an account with ACX Exchange investor funds for personal investments. Guo is also accused of moving 21.11 Bitcoin (BTC), approximately worth $1.3 million, to a personal wallet under his control in 2019.
Other directors of Blockchain Global, Xue "Sam" Lee and Zijang "Ryan" Xu, are also being examined for probable breaches of corporate regulations during their time at ACX crypto exchange. Both Lee and Xu are thought to be located abroad. Guo is the only person involved who is currently in Australia, and scrutinising him could raise chances of recovering funds, said Justice Button. The investigation, which commenced last month, is expected to continue for around a year, as per the court's judgment.
Concerning the late initiation of the probe, Justice Button remarked that the reason was unclear given the timing of Blockchain Global's failure, but the investigation is now actively underway. On another note, Lee was recently accused by the United States Securities and Exchange Commission for participating in a $1.7 billion cryptocurrency scam under a series of projects titled "HyperFund." Lee, along with his colleague Brenda "Bitcoin Beautee" Chunga, allegedly enticed investors with misleading promises of secure, high returns through crypto mining and other trending ventures. The U.S. Attorney has also charged Lee with conspiracy to commit securities and wire fraud.
Published At
2/29/2024 9:22:40 AM
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