Key Takeaways
- Liang "Allan" Guo, ex-director of Blockchain Global, is restricted from leaving Australia amid an investigation into the company's $37 million creditor loss.
- The Australian Securities and Investments Commission (ASIC) obtained a court order on February 28, requiring Guo to surrender his passports and restricting his travel until August 20.
- ASIC's probe centers on Guo's alleged mismanagement of funds and extends to other directors, underscoring the importance of regulatory compliance in the crypto industry.
Liang "Allan" Guo, former director of the Melbourne-based crypto firm Blockchain Global, has been restrained from leaving Australia.
This decision comes as part of an ongoing investigation into the company's downfall, which left creditors out of pocket by approximately $37 million.
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On February 28, the Australian Securities and Investments Commission (ASIC) announced that it had obtained a temporary travel restriction order on Guo from the Federal Court of Australia. This order was granted at a hearing Guo did not attend, with a future court appearance scheduled for March 12.
Guo must now surrender his passports and is prohibited from attempting to exit Australia until August 20.
ASIC's investigation focuses on accusations that Guo improperly handled funds from investors via the ACX Exchange, a digital currency platform Blockchain Global ran between January 2016 and December 2019.
The crypto executive is accused of diverting $1.69 million from investor accounts for personal investments and transferring $1.3 million worth of Bitcoin to his crypto wallet.
ASIC is also scrutinizing the two other directors of Blockchain Global, Xue "Sam" Lee and Zijang "Ryan" Xu, for potential violations of corporate law.
However, Justice Catherine Button, presiding over the case, remarks on the importance of investigating Guo in particular:
<Guo> is is the only person of interest who remains in Australia and his examination may improve the prospects of <...> recovering monies.
As this case unfolds, it serves as a cautionary tale for the global crypto community about the importance of regulatory compliance and the potential repercussions of financial mismanagement.
Another legal battle shaking the crypto community involves Sam Bankman-Fried, founder of now-bankrupt crypto exchange FTX, as he attempts to negotiate a reduction of his proposed 100-year-long sentence.
