Australian regulators are stepping up legal action against Liang “Allan” Guo, former director of the failed crypto exchange ACX.io, over alleged misconduct in one of the country’s most damaging digital asset collapses.
The Australian Securities and Investments Commission (ASIC) announced civil proceedings against Guo on Wednesday, accusing him of misusing client funds, keeping inadequate financial records, and issuing misleading statements during his tenure at Blockchain Global Ltd., ACX’s parent company.
ACX froze withdrawals without warning in late 2019 and has since been placed into liquidation. According to estimates from liquidators, more than A$22.7 million (~$15 million USD) in customer assets remain unreturned, contributing to Blockchain Global’s unsecured debts of nearly A$58.6 million.
ASIC had previously blocked Blockchain Global’s 2017 IPO and denied its application for a financial services license. The agency launched a formal investigation in January 2024, prompting a temporary travel ban on Guo. That restriction lapsed in August, and Guo subsequently left Australia in September. He has not returned.
ACX Allegations Echo FTX as Fund Misuse Comes to Light
The collapse of ACX.io continues to draw comparisons to the infamous implosion of FTX, as new details surface about the company’s financial mismanagement.
In an October 2023 report to ASIC and creditors, liquidator Andrew Yeo of Pitcher Partners revealed that customer funds were co-mingled with company capital. This lack of segregation enabled the transfer of funds to related entities without proper oversight—an arrangement reminiscent of the user asset misuse that led to FTX’s collapse.
Guo’s defense centers on the claim that the company’s crypto holdings became inaccessible after his laptop—allegedly containing private wallet keys—was stolen in China in 2019. However, no police report was ever filed, according to The Sydney Morning Herald, raising serious doubts about the integrity of Blockchain Global’s internal controls.
Fellow Executives Face Fraud Probes Across Jurisdictions
ASIC’s investigation has widened to include other Blockchain Global executives, namely Xue “Sam” Lee and Zijang “Ryan” Xu. Both are now under scrutiny for their involvement in the firm’s collapse, as well as broader allegations of global fraud.
Lee faces charges in the United States tied to his role in the HyperTech ecosystem, which includes HyperFund and HyperVerse. U.S. federal prosecutors have accused him of running a $1.89 billion Ponzi scheme disguised as a crypto mining and investment operation. The U.S. Securities and Exchange Commission also filed a civil complaint against Lee and his associate Brenda “Bitcoin Beautee” Chunga. Chunga has since pleaded guilty to conspiracy charges related to wire and securities fraud.
The growing scope of legal actions across jurisdictions highlights how the fallout from Blockchain Global is not isolated. It forms part of a global crackdown on cross-border crypto misconduct and investment fraud.
Quick Facts
- ASIC is suing Liang “Allan” Guo for misuse of funds and misleading conduct while director at Blockchain Global
- Over A$22.7 million in customer assets remain unpaid after ACX.io’s collapse
- Guo claims stolen laptop in China led to loss of crypto wallet keys, but no police report was filed
- Fellow executive Sam Lee is facing U.S. charges tied to a $1.89B HyperFund Ponzi scheme
- The case underscores growing international cooperation in prosecuting crypto-related financial crime
