Liang “Allan” Guo, the former director of Blockchain Global, is facing legal action from Australia’s financial watchdog. The Australian Securities and Investments Commission (ASIC) has launched civil proceedings against Guo, citing multiple allegations tied to his tenure at the helm of Blockchain Global and its now-defunct platform, the ACX Exchange. The proceedings, announced in a press release on May 28, 2025, accuse Guo of breaching his directors’ duties, making misleading statements regarding customer funds, and failing to maintain accurate financial records.
ASIC’s Allegations
ASIC’s charges are rooted in the turbulent history of the ACX Exchange, which was operational from mid-2016 until its collapse in December 2019. The downfall of the exchange left customers in a lurch, unable to access their assets. It was during liquidator examinations in 2022 that revelations surfaced about the exchange’s handling of customer investments. According to reports, ACX had pooled customer funds into a collective pot, using the money to purchase cryptocurrencies. This practice, as alleged, was a gross mismanagement of customer assets and a breach of fiduciary duty.
The financial implications are staggering. Liquidators have estimated that Blockchain Global owes over 20 million Australian dollars (approximately $12.8 million) to unsecured creditors, including former ACX customers. By November 2023, it was reported that these claims ballooned to 58.6 million Australian dollars ($37.7 million), with a significant portion still owed to those affected by the exchange’s demise.
Guo’s Departure and Ongoing Investigations
Guo’s legal woes are compounded by his absence. After being banned from leaving Australia amid the investigation, Guo managed to depart the country in September 2024 when the travel restrictions lifted, and has not returned since. ASIC asserts that its investigation, which began in January 2024, continues to probe whether Guo committed any criminal offenses, including allegations of diverting funds to pay off personal debts.
The regulator’s pursuit of justice in this case reflects a broader crackdown on crypto-related misconduct in Australia. ASIC is also seeking the High Court’s permission to appeal a decision in a separate case involving fintech firm Block Earner. The regulator contends that Block Earner’s fixed-yield earning service should be classified as a financial product, a claim the courts previously dismissed. This mirrors global trends, as seen in the UK’s FCA seeking public and industry views on crypto regulation, highlighting the international dimension of regulatory efforts.
Wider Implications for the Crypto Market
This case is setting the stage for a critical conversation about regulation and accountability in the cryptocurrency sphere, particularly in Australia. As the market matures, the pressure is on regulators to ensure that platforms operate transparently and that investors’ interests are safeguarded. According to financial analysts, this may just be the beginning. “The Guo case could serve as a precedent, signaling a stricter regulatory environment,” says crypto analyst Sarah Thompson. “It raises the stakes for how exchanges manage client funds and adhere to financial regulations.”
Yet, there’s an undercurrent of skepticism among industry experts about the potential ripple effects. Some caution that overly aggressive regulatory actions might stifle innovation or drive operations underground. “There’s a fine line between protection and suffocation,” warns Mark Liu, a blockchain consultant. “Regulatory bodies need to strike a balance to foster a healthy ecosystem.” This sentiment echoes the ongoing debate in the U.S. Congress over crypto legislation, where similar concerns about innovation and regulation are being discussed.
Looking Ahead
The legal proceedings against Guo highlight the ongoing challenges in regulating the crypto industry, especially as new financial products emerge and traditional oversight mechanisms struggle to keep pace. The outcome of this case, along with ASIC’s other regulatory initiatives, will likely influence the landscape of cryptocurrency in Australia for years to come.
As ASIC continues its pursuit, the broader crypto community watches closely. Will this lead to more robust protection for consumers, or will it end up as another cautionary tale in the wild west of digital finance? The stakes are high, and the implications could be far-reaching. Stay tuned as this saga unfolds, with developments expected throughout 2025 and beyond.
Source
This article is based on: Australian regulator takes former Blockchain Global director to court
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
