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Former Blockchain Global Director Faces Travel Restrictions Amid ASIC Probe

Mar 1, 2024 at 06:48

Liang “Allan” Guo, a former director of Australian cryptocurrency firm Blockchain Global, has been placed under temporary travel restrictions by the Australian Securities and Investments Commission (ASIC) as part of an ongoing investigation into the collapse of the company and its affiliated ACX Exchange.

Guo, a Chinese citizen, has been issued an interim travel restraint order by the Federal Court of Australia, preventing him from leaving Australia until August 20th. The order was granted during a hearing held in Guo’s absence, with concerns raised by ASIC regarding the possibility of him leaving the country amidst the ongoing investigation. Guo is scheduled to appear before the court on March 12th.

The ASIC alleges that Blockchain Global, which operated the ACX Exchange from January 2016 to December 2019, owes creditors $37 million. Guo is specifically accused of transferring funds from a bank account holding ACX Exchange investor funds for personal investments, as well as transferring a substantial amount of Bitcoin to a private wallet he controlled.

Investigations into Guo and other directors of Blockchain Global, namely Xue “Sam” Lee and Zijang “Ryan” Xu, are ongoing, with allegations of breaches of corporate law while operating the ACX crypto exchange. Lee and Xu are believed to reside overseas, making Guo the sole person of interest remaining in Australia.

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The ASIC’s investigation, initiated last month, is expected to continue for approximately 12 months. Justice Catherine Button expressed the importance of Guo’s examination in potentially aiding the recovery of funds. Additionally, she noted the ongoing investigations into Lee, who faces charges in the United States related to his involvement in a significant crypto fraud scheme.

Lee and his associate Brenda “Bitcoin Beautee” Chunga were charged by the United States Securities and Exchange Commission for their roles in promoting fraudulent investment schemes under projects dubbed “HyperFund,” promising high returns from crypto mining activities.

The ASIC’s investigation into Guo and his associates is ongoing, with a focus on potential breaches of corporate law and the handling of investor funds during the operation of the ACX Exchange.

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