Summary – Key Takeaways
- ASIC sues Liang Allan Guo, former Blockchain Global executive, for misusing over $20 million in customer funds.
- Allegations include unauthorized personal transactions like mortgage payments and crypto wallet transfers.
- Federal Court has restricted Guo from leaving Australia during ongoing investigations.
- Other former ACX directors, Sam Lee and Zijang Xu, are tied to international crypto scams like HyperVerse.
- This lawsuit is a major step by ASIC in curbing crypto-related frauds in Australia.
ASIC Sues Former Blockchain Global Executive Over $20M Crypto Fraud
Focus Keyword: ASIC sues Blockchain Global executive
The ACX Collapse and ASIC’s Legal Action
The Australian Securities and Investments Commission (ASIC) has filed a high-profile lawsuit against Liang Allan Guo, a former director of Blockchain Global, after Australia’s first major crypto exchange, ACX, collapsed in 2019.
Guo is being sued for misusing over $20 million in customer funds — a case that highlights the growing need for tighter regulation in the cryptocurrency industry.
How Guo Misused Customer Funds
ASIC’s lawsuit alleges that Guo personally benefited from the misuse of ACX customer funds. The unauthorized transactions included:
- $2.6 million used to pay his personal mortgage
- 23.11 BTC transferred to his personal crypto wallet
- $333,000 withdrawn to purchase shares
- $1.4 million invested under Blockchain Global’s name — with no official documentation
These activities were conducted without customer consent, and ASIC labeled them as illegal and unauthorized.
Guo’s Movements Restricted by Federal Court
In response to the severity of the case, the Federal Court of Australia has prohibited Guo from leaving the country. He is the only ACX director still in Australia, while the others, Sam Lee and Zijang Xu, have already fled overseas after the ACX collapse.
This move ensures that ASIC can continue its investigation without risk of Guo evading justice.
The Bigger Picture: ACX, HyperVerse, and Crypto Scams
ACX’s downfall was just the beginning. ASIC suspects ties between the exchange and unregulated crypto schemes in Australia.
Former directors Sam Lee and Zijang Xu were allegedly involved in the HyperVerse project — a $1.89 billion Ponzi scheme, according to the U.S. SEC. HyperVerse promised high returns but had no real revenue generation, echoing the classic structure of a pyramid scam.
Sam Lee, once hailed as Australia’s “Crown Prince of Bitcoin”, now faces legal challenges in the U.S. for his role in HyperVerse.
ASIC’s Determination to Clean Up Crypto Fraud
ASIC’s current action against Guo represents its stronger stance on crypto fraud. This legal milestone is a warning to bad actors in the blockchain space.
“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.” – ASIC official statement
Through this case, ASIC demonstrates its ongoing commitment to investor protection and regulatory enforcement in the volatile crypto sector.
Conclusion: A Landmark Case for Crypto Regulation
As ASIC sues Blockchain Global executive Liang Allan Guo, it sets a powerful precedent in Australia’s legal and regulatory landscape. The case underscores the importance of:
- Accountability in crypto leadership
- Protecting investor interests
- Bringing scam artists to justice
With crypto fraud on the rise, ASIC’s aggressive enforcement is likely to inspire more transparent practices in the crypto and blockchain industries moving forward.