The Australian Securities and Investments Commission (ASIC) has taken decisive action against Liang “Allan” Guo, the former director of the now-defunct cryptocurrency firm Blockchain Global, by placing an interim travel restraint order to prevent him from leaving Australia. This measure comes as ASIC delves into the financial collapse of Blockchain Global, which owes creditors a massive 58 million Australian dollars ($37 million).
Legal Action Against Guo
Issued by the Federal Court of Australia on February 20, the order requires Guo, a Chinese citizen, to surrender all passports and restricts any attempts to leave the country until August 20. This move, executed in Guo’s absence, sets the stage for his upcoming court appearance on March 12, where the investigation into Blockchain Global’s downfall will further unfold.
Allegations of Misappropriation
ASIC’s probe centers on allegations of serious financial misconduct, accusing Guo of misappropriating $1.69 million (2.6 million AUD) from ACX Exchange investor accounts for personal use and transferring 21.11 Bitcoin, valued at approximately $1.3 million, to a private wallet. These actions have raised significant concerns about the integrity of Blockchain Global’s management and its impact on creditors and investors.
Focus on Recovery and Regulation
With other directors of Blockchain Global believed to be outside Australia, ASIC’s efforts are currently concentrated on Guo as a key figure in the potential recovery of misappropriated funds. This case underscores the challenges of regulating the cryptocurrency industry and protecting investors from corporate malfeasance.
International Legal Challenges
The ASIC investigation into Blockchain Global is part of a broader crackdown on fraudulent activities within the cryptocurrency market. Notably, the United States Securities and Exchange Commission (SEC) has also charged Xue “Sam” Lee, another director of Blockchain Global, in connection with a $1.7-billion cryptocurrency fraud scheme. These developments highlight the international scope of regulatory efforts to address fraud and ensure market integrity in the digital finance sector.
