ASIC Files Civil Proceedings Against Former Blockchain Global Director Over $20M Misuse of Customer Funds

Australia’s securities regulator has escalated its crackdown on cryptocurrency misconduct with civil proceedings against Liang Guo, a former director of collapsed exchange operator Blockchain Global. The case alleges systematic breaches of corporate duties, including misuse of over $20 million in customer funds from the ACX Exchange platform.

Court documents reveal a pattern of financial mismanagement dating back to 2019, when the exchange froze withdrawals amid liquidity issues. Guo stands accused of failing to maintain proper financial records while making misleading statements about exchange operations - allegations that crystallize longstanding concerns about oversight in Australia’s early crypto market.

The lawsuit marks a regulatory reckoning for one of the country’s most damaging crypto failures. Liquidators estimate $37.7 million owed to creditors, with former customers accounting for more than half the claims. ASIC’s four-year investigation underscores growing institutional scrutiny of digital asset custodianship standards.