ASIC Takes Legal Action Against Blockchain Exec Over Missing $20M
- ASIC has sued a former Blockchain Global executive for misusing over $20 million
- ASIC continues its investigation as the Federal Court ordered Guo not to leave the country
The ASIC has filed a lawsuit against Liang Allan Guo, a former Blockchain Global executive. It accused Guo of owing over $20 million in unpaid customer claims. This allegation is in regard to the first-ever Australian crypto exchange collapse of the ACX.
Guo served as a director at the Blockchain Global firm before its downfall. The ASIC says he used customer funds for his personal matters. ASIC found unauthorized personal transfers of Guo, including $2.6 million for his mortgage, and 23.11 BTC moved to his own wallet.
Guo’s other unauthorized transactions are a $333,000 withdrawal to purchase shares and a $1.4 million transfer for making investments in the name of Blockchain Global. Neither of these transactions has proper documentation and is considered illegal.
The Federal Court has restricted Guo from leaving Australia so that ASIC could continue its ongoing investigation. This is because Guo is the only remaining ACX director in Australia, as other executives, Sam Lee and Zijang Xu, left the country following the ACX collapse.
Broader Implications and Related ASIC Investigations
The ACX exchange ceased its operations in December 2019. Its collapse caused many investors to lose their funds. ASIC suspected that the ACX collapse had connections with unregulated cryptocurrency schemes in Australia.
Former ACX directors Lee and Xu were involved with other crypto scams, such as the HyperVerse. The HyperVerse project was called a global Ponzi scheme by the SEC, and it defrauded investors of around $1.89 billion in funds.
One of the former directors of the ACX exchange, Sam Lee, was once known as Australia’s “crown prince of bitcoin.” Because of his HyperVerse scheme, he had to face charges in the US. This didn’t have any legitimate revenue-generating activities. Similar to a classic Ponzi scheme, they took funds from new investors and paid old participants. The fact that almost all of the former ACX executives are involved with crypto frauds and scams is noteworthy.
The present ASIC lawsuit against Guo emphasizes the regulator’s commitment to addressing crypto fraud. This case took multiple years to solve and finally found the real culprits. It will serve as an example for similar crypto-related frauds that may happen in the future in Australia.
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ASIC Takes Legal Action Against Blockchain Exec Over Missing $20M
- ASIC has sued a former Blockchain Global executive for misusing over $20 million
- ASIC continues its investigation as the Federal Court ordered Guo not to leave the country
The ASIC has filed a lawsuit against Liang Allan Guo, a former Blockchain Global executive. It accused Guo of owing over $20 million in unpaid customer claims. This allegation is in regard to the first-ever Australian crypto exchange collapse of the ACX.
Guo served as a director at the Blockchain Global firm before its downfall. The ASIC says he used customer funds for his personal matters. ASIC found unauthorized personal transfers of Guo, including $2.6 million for his mortgage, and 23.11 BTC moved to his own wallet.
Guo’s other unauthorized transactions are a $333,000 withdrawal to purchase shares and a $1.4 million transfer for making investments in the name of Blockchain Global. Neither of these transactions has proper documentation and is considered illegal.
The Federal Court has restricted Guo from leaving Australia so that ASIC could continue its ongoing investigation. This is because Guo is the only remaining ACX director in Australia, as other executives, Sam Lee and Zijang Xu, left the country following the ACX collapse.
Broader Implications and Related ASIC Investigations
The ACX exchange ceased its operations in December 2019. Its collapse caused many investors to lose their funds. ASIC suspected that the ACX collapse had connections with unregulated cryptocurrency schemes in Australia.
Former ACX directors Lee and Xu were involved with other crypto scams, such as the HyperVerse. The HyperVerse project was called a global Ponzi scheme by the SEC, and it defrauded investors of around $1.89 billion in funds.
One of the former directors of the ACX exchange, Sam Lee, was once known as Australia’s “crown prince of bitcoin.” Because of his HyperVerse scheme, he had to face charges in the US. This didn’t have any legitimate revenue-generating activities. Similar to a classic Ponzi scheme, they took funds from new investors and paid old participants. The fact that almost all of the former ACX executives are involved with crypto frauds and scams is noteworthy.
The present ASIC lawsuit against Guo emphasizes the regulator’s commitment to addressing crypto fraud. This case took multiple years to solve and finally found the real culprits. It will serve as an example for similar crypto-related frauds that may happen in the future in Australia.
Highlighted Crypto News Today:
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Read More
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