ACX Exchange Scandal Unfolds: Liang 'Allan' Guo's Assets Frozen Amid ASIC Investigation

ACX Exchange Scandal Unfolds: Liang ‘Allan’ Guo’s Assets Frozen Amid ASIC Investigation

Time Stamp: March 8, 2024 12:00 AM
  • Liang “Allan” Guo is embroiled in a severe legal battle as authorities delve into the malpractices that led to a $37 million (AUD 58 million) deficit left by the ACX Exchange’s parent company, Blockchain Global.
  • The Australian Securities and Investments Commission (ASIC) has responded firmly, obtaining an interim order from the Federal Court of Australia.
  • ASIC anticipates conducting a complex investigation over the next 12 months.

In the rapidly evolving world of cryptocurrency, the ACX Exchange, once a thriving Australian crypto firm, faced a dramatic collapse in 2021, leaving a trail of creditor debts and legal inquiries. A trio led by Liang “Allan” Guo’s direction caused the company’s implosion, drawing the attention of federal regulators and sparking a thorough investigation that recently led to strict travel restrictions for Guo. 

Liang “Allan” Guo is embroiled in a severe legal battle as authorities delve into the malpractices that led to a $37 million (AUD 58 million) deficit left by the ACX Exchange’s parent company, Blockchain Global. The implications of this financial catastrophe extend beyond the company’s creditors; it mirrors the pitfalls of unregulated market spaces and the growing pains of the crypto industry.

Liang “Allan” Guo’s position as a director at Blockchain Global has significantly affected the company’s legal standing due to his alleged involvement in activities that led to the company’s financial issues and subsequent scrutiny.

ACX Exchange: The Downfall and Investigation into Liang “Allan” Guo

The Australian Securities and Investments Commission (ASIC) has accused Guo of misappropriating investor funds from the ACX Exchange, transferring a sizable amount of money to personal accounts, and moving cryptocurrencies to private wallets he controlled. These allegations, if proven, constitute grave breaches of corporate law and fiduciary duty.

acx-exchange
Liang “Allan” Guo(Frony Centre), and his team are the founders of aux exchange,, which stands at the centre stage of heated crypto lawsuit against their activities and conduct.[Photo/Medium]

The gravity of these allegations and the ACX Exchange’s resulting collapse, which left creditors owed $37 million (58 million Australian dollars), have compromised Blockchain Global’s legal standing. As the investigation unfolds, the ASIC has taken steps to secure Guo’s presence in Australia by obtaining a federal court order to restrict his travel. Guo’s actions as director and the ongoing investigation into Blockchain Global’s affairs have contributed to the company’s legal and financial turmoil.

Also, Read GHash Mining Scam Exposes Vulnerabilities in Kenya’s Crypto Landscape.

The Australian Securities and Investments Commission (ASIC) has been firm in its response, obtaining an interim order from the Federal Court of Australia preventing Guo from leaving the nation. Authorities issued this directive to ensure Guo’s availability as a critical person of interest in the ongoing investigation. Guo’s assets, including passports, are now under the control of Australian authorities, who emphasize the gravity of his alleged misconduct.

Guo will appear in court on March 12. ASIC’s proactive measures, spearheaded by the allegations of large sums of money illicitly transferred by Guo, underscore the severity and urgency of the situation. ASIC aims to rectify the breach of trust involving the 21.11 bitcoins suspected of being clandestinely transferred to Guo’s private wallet and the $1.69 million appropriated from investor funds.

This affair’s tentacles extend beyond Australian borders. Co-directors Xue “Sam” Lee and Zijang “Ryan” Xu, already facing scrutiny over the ACX Exchange, are also implicated in Hyperfund, now recognized as a $1.7 billion crypto fraud charade. The SEC has already charged Lee, now a resident of Dubai, for his involvement. These international dimensions complicate the investigative landscape and portray the wide-ranging impact of crypto fraud.

ASIC anticipates conducting a complex investigation over the next 12 months. Regulators are signalling a turning point in oversight by scrutinizing Guo and examining crypto firm operations more broadly. Justice Button has aired her concerns about the investigation’s timing relative to Blockchain Global’s collapse yet acknowledges its necessity.

Australia’s legal system may seem labyrinthine as the cryptographic puzzles are at digital currency’s core. Yet, its aim remains clear: to unravel the mystery behind the collapse of ACX Exchange and hold accountable those at the helm. Liang “Allan” Guo has become the focal point of an investigation that may set precedents and shape the future of crypto regulation and fraud prevention.

The ACX Exchange’s collapse has significantly impacted the creditors owed money by Blockchain Global, resulting in substantial financial losses. Blockchain Global’s failure has left creditors collectively owed $37 million (58 million Australian dollars). This has likely caused economic duress for those creditors, who may range from individual investors to other businesses that provided services or loans to the company. 

Creditors face the challenge of recovering their funds as Blockchain Global cannot fulfil its financial obligations following the collapse of the ACX Exchange. ASIC is pursuing legal action and appointing liquidators to oversee the winding down of the exchange, investigate potential fraud and mismanagement, and potentially recover assets for redistribution to creditors. 

However, such processes can be lengthy and complex, and creditors are not guaranteed to recoup their entire investment or debts owed. This situation highlights the risks inherent in the cryptocurrency market, especially when companies fail to implement robust governance and risk management protocols. 

Whether Guo’s day in court will result in restitution for the creditors or further expose the risks associated with cryptocurrency remains to be seen. The Australian government is determined to restore stability and trust in a market rattled by severe allegations against Blockchain Global and its directors. The case of the ACX Exchange collapse is a cautionary tale highlighting the necessity for vigilance, transparency, and proper governance within the cryptosphere.

Also, Read GHash Mining Scam Exposes Vulnerabilities in Kenya’s Crypto Landscape.

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