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Former Blockchain Global Director Barred from Leaving Australia
Authorities recently barred Liang Guo, the former director of the now-defunct Australian cryptocurrency firm Blockchain Global, from leaving Australia following a court order issued by the Federal Court of Australia on February 28.
Interim Travel Restraint Order
The Australian Securities and Investments Commission (ASIC) announced that it had secured an interim travel restraint order from the Federal Court of Australia against Liang Guo. The court mandated that Guo surrender all passports he owns, prohibiting him from departing or attempting to leave Australia until August 20.
Investigation and Allegations
ASIC is investigating Mr. Guo and two other directors over the collapse of a #crypto-asset exchange operated by Blockchain Global. The regulator applied for the travel restraint orders over concerns that Mr. Guo may leave the country while the investigation is ongoing.
Justice Catherine Button described the allegations against Guo as “very serious.” Guo allegedly transferred funds from a bank account holding ACX Exchange investor funds for personal investments and moved Bitcoin to a private wallet under his control.
Blockchain Global Collapse
Blockchain Global, the operator of ACX Exchange, collapsed in early 2020 and still owes creditors $37 million. Liquidators were appointed to oversee the exchange’s winding down in February 2022.
Legal Proceedings and Charges
ASIC is also probing Guo, along with Blockchain Global’s other directors, for alleged corporate law breaches during ACX operations. Xue Lee and Zijang Xu, the other directors, are believed to be residing overseas. Guo is the primary person of interest remaining in Australia, potentially enhancing the chances of recovering funds.
Xue Lee, another director, was charged by the U.S. Securities and Exchange Commission in connection with a $1.7 billion crypto fraud scheme called “HyperFund.” Lee faces U.S. charges for conspiracy to commit securities and wire fraud.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.