The former director of Blockchain Global, an Australian cryptocurrency company, has been subjected to a temporary travel ban within the country amid an investigation into his involvement in the company's collapse, which has left creditors owed a substantial sum of US$37 million (A$58 million).
On February 28, the Australian Securities and Investments Commission (ASIC) announced that it had secured a temporary travel restriction order from the Australian Federal Court against Liang “Allan” Guo, the company's director. The order, issued on February 20, mandates Guo, a Chinese national, to surrender all passports and prohibits him from leaving Australia until August 20.
The decision was made in Guo's absence during a court hearing, depriving him of an immediate opportunity to respond. Guo is slated to appear in court on March 12 to address the matter. ASIC cited concerns about Guo potentially fleeing the country while the investigation into the company's affairs is ongoing as the rationale behind seeking the travel restriction order.
Judge Catherine Barton, presiding over the sentencing in the Federal Court, emphasized the gravity of the charges against Guo, characterizing them as "very serious" in nature.
Blockchain Global, during its operational tenure from January 2016 to December 2019, managed the cryptocurrency exchange ACX Exchange. The appointment of a liquidator to oversee the exchange's closure on February 11, 2022, marked the culmination of its activities. ASIC alleges that Guo diverted US$1.69 million (A$2.6 million) from a bank account holding ACX Exchange investor funds for personal investments, among other misconduct.
Additionally, ASIC asserts that Guo transferred 21.11 Bitcoins, valued at approximately $1.3 million, into a private wallet under his control in 2019. The investigation also extends to Guo's counterparts at Blockchain Global, Xue “Sam” Lee and Zijang “Ryan” Xu, regarding suspected breaches of corporate law during their tenure with the ACX cryptocurrency exchange. While Lee and Xu are believed to reside overseas, Guo's presence in Australia is perceived as pivotal in enhancing the prospects of recovering the funds implicated in the investigation.
ASIC's inquiry into the trio commenced last month and is anticipated to endure for approximately a year. Judge Barton expressed uncertainty over the initiation of the investigation, given Blockchain Global's insolvency, yet affirmed its continuation, albeit at a nascent stage.
Separately, on January 29, Lee faced charges from the SEC in the United States, pertaining to his alleged involvement in a $1.7 billion cryptocurrency fraud scheme dubbed "HyperFund." Alongside his associate Brenda “Bitcoin Beautee” Chunga, Lee stands accused of promoting fraudulent membership packages promising investors high returns from cryptocurrency-related ventures, resulting in charges of conspiracy to commit securities and wire fraud.
