Australia’s markets regulator has filed civil proceedings towards Liang “Allan” Guo, the previous director of Blockchain World.
Guo will face the courtroom on “allegations referring to a number of breaches of his administrators’ duties,” the Australian Securities and Investments Fee said in a Might 28 press launch.
ASIC alleged Guo made a number of breaches of administrators’ duties referring to his dealings with ACX Change buyer funds, and claimed he made false and deceptive statements about these dealings and failed to keep up correct books and information.
The now-liquidated Blockchain World operated the ACX Change from mid-2016 till December 2019, when it collapsed as clients might not withdraw their property.
Throughout liquidator’s examinations in 2022, the courts have been advised that ACX trade took the money invested by its clients to purchase crypto and mingled the funds into one pooled fund, the Sydney Morning Herald reported on the time.
The liquidators of Blockchain World estimate that the corporate owed over 20 million Australian {dollars} ($12.8 million) in unsecured creditor claims to former clients of the ACX Change, ASIC mentioned.
In November 2023, liquidators reported that Blockchain World had 58.6 million Australian {dollars} ($37.7 million) owed to unsecured collectors. Of that whole, 22.7 million Australian {dollars} ($14.6 million) have been unsecured creditor claims acquired from former clients of the crypto exchange.
Guo not in nation, ASIC says
ASIC mentioned it started investigating Blockchain World in January 2024 following the liquidators’ report.
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Guo was banned from leaving the country because the regulator investigated whether or not he dedicated any prison offences, together with transferring cash from the collapsed trade to pay his mortgage.
Guo left Australia in September 2024 after journey restraint orders expired, and he hasn’t returned, it famous.
In the meantime, ASIC is searching for the Excessive Court docket’s permission to attraction a decrease courtroom’s ruling in favor of fintech agency Block Earner in a separate case.
The regulator claimed the crypto firm’s fixed-yield incomes service was not a monetary product.
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