Authorities recently barred Liang Guo, the former director of the now-defunct Australian cryptocurrency firm Blockchain Global, from leaving Australia, following a court order issued by the Federal Court of Australia on February 28.
The Australian Securities and Investments Commission (ASIC) announced on X, that it had secured an interim travel restraint order from the Federal Court of Australia against Liang Guo.
We have secured interim orders restraining Liang Guo, a former director of Blockchain Global, from leaving Australia. We are investigating Mr Guo and two other directors over the collapse of a #crypto-asset exchange operated by the company https://t.co/ZqojEQoLUK
— ASIC Media (@asicmedia) February 28, 2024
Liang Guo
The court has mandated that Guo surrender all passports he owns, prohibiting him from departing or attempting to leave Australia until August 20.
The order was issued in Guo’s absence during a hearing, with the former director unable to provide a response. Guo is scheduled to make his next court appearance on March 12.
“ASIC applied for the travel restraint orders over concerns that Mr Guo may leave the country while it continues its investigation,” the regulator said.
The allegations against Guo “are very serious,” said Justice Catherine Button in the federal court judgment.
As the director, Guo allegedly transferred $1.69 million (2.6 million AUD) from a bank account holding ACX Exchange investor funds for personal investments. Additionally, in 2019, Guo reportedly transferred 21.11 Bitcoin (currently valued at approximately $1.3 million) to a private wallet under his control.
Blockchain Global
Failed crypto firm Blockchain Global collapsed in early 2020 and still owes creditors $37 million.
Blockchain Global, the operator of ACX Exchange from January 2016 to December 2019, had liquidators appointed to oversee the exchange’s winding down in February 2022.
ASIC is also probing Guo, along with Blockchain Global’s other directors, Xue Lee and Zijang Xu, for alleged corporate law breaches during ACX operations. Lee and Xu are believed to reside overseas.
Justice Button mentioned Guo as the primary person of interest remaining in Australia, potentially enhancing the chances of recovering funds.
On January 29, Lee was charged by the U.S. Securities and Exchange Commission in connection with a $1.7-billion crypto fraud scheme called “HyperFund.” Lee, along with associate Brenda Chunga, allegedly promoted membership packages with false promises of high returns from crypto mining and other activities.
Lee also faces U.S. charges for conspiracy to commit securities and wire fraud.
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