Former ACX.io Director Faces Civil Court Action Over Missing Customer Funds
A former director of the now-defunct Australian cryptocurrency exchange ACX.io is under fire for alleged serious breaches linked to the disappearance of millions in customer funds. Liang “Allan” Guo is facing civil court action from the Australian Securities and Investments Commission (ASIC) for misusing user funds, failing to maintain proper financial records, and making misleading statements during his tenure at Blockchain Global Ltd.
Blockchain Global Ltd, which operated the ACX exchange, went into liquidation after freezing withdrawals in late 2019, leaving over $20 million in claims from former customers. Liquidators estimate that ACX users are owed at least $22.7 million out of the company’s total debt of $58.6 million to unsecured creditors.
The ASIC’s investigation into the collapse of ACX began in January 2024, leading to the recent legal action against Guo. The regulator had previously raised governance concerns, halting Blockchain Global’s 2017 IPO bid and denying it a financial services license.
In a report to ASIC and creditors in October 2023, liquidator Andrew Yeo found that customer funds were mixed with company funds and diverted to related entities, echoing similar incidents at other exchanges like FTX. Guo claimed that crypto holdings worth millions were lost when his laptop was stolen in 2019, but no police report was ever filed to verify the incident.
Investigations Extend to Other Directors
ASIC is also investigating other directors of Blockchain Global, Xue “Sam” Lee and Zijang “Ryan” Xu. Lee was charged by U.S. authorities for allegedly running a $1.89 billion Ponzi scheme under the HyperTech umbrella, which included HyperFund and HyperVerse. The SEC filed criminal charges against Lee and promoter Brenda “Bitcoin Beautee” Chunga for securities and wire fraud.
The legal action against Guo and the ongoing investigations into the other directors highlight the challenges faced by the cryptocurrency industry in maintaining transparency and protecting customer funds. The fallout from the collapse of ACX serves as a cautionary tale for investors and regulators alike.
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