The Australians involved in blockchain are not without drama either. According to PANews, the Australian Securities and Investments Commission (ASIC) has just filed a civil lawsuit against Mr. Allan Guo – the former director of Blockchain Global – for a series of actions believed to have disrupted the financial process.
Specifically, what does this mean? 🤔
💀 The customer fund at ACX exchange – a trading platform that was once part of Blockchain Global – is managed in a 'brotherhood' style, lacking transparency, distorting cash flows, and particularly… not bothering to keep proper records.
The ACX exchange has been 'out of the game' since December 2019, but the drama has continued until now. After digging deep, ASIC discovered that the company is drowning in debt: a total of 58.6 million AUD (~37.7 million USD), of which 22.7 million AUD (nearly 14.6 million USD) is actually customers' money on the exchange.
📦 The interesting part is that Mr. Guo has permanently left Australia after the travel restrictions ended in September 2024. No one has seen him return yet. It's a classic case of a gentle 'exit scam' that has left the community in pain.
😐 Moreover, ASIC is also busy… appealing another case: they want to overturn a ruling favorable to the cryptocurrency company Block Earner from a lower court. Overall, the crypto scene in Australia surely won't lack drama in the near future.
A few lines of reflection:
When cryptocurrencies lack a strict legal framework, it is common for companies to casually use customer funds for speculative trading and then backtrack. Users need to equip themselves with knowledge and choose truly responsible platforms.
👇 What do you think about the disappearance of 58 million? Should there be tighter regulations on cryptocurrencies in Australia?