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Authorities have recently prohibited Liang Guo, the ex-director of the now-defunct Australian cryptocurrency company Blockchain Global, from leaving Australia, following a court ruling issued by the Federal Court of Australia on February 28.
The Australian Securities and Investments Commission (ASIC) announced on X that it had obtained an interim travel restriction order from the Federal Court of Australia against Liang Guo.
We have obtained interim orders preventing Liang Guo, a former director of Blockchain Global, from departing Australia. We are investigating Mr. Guo and two other directors regarding the failure of a #crypto-asset exchange operated by the company https://t.co/ZqojEQoLUK
— ASIC Media (@asicmedia) February 28, 2024
Liang Guo
The court has ordered Guo to surrender all passports in his possession, barring him from leaving or attempting to exit Australia until August 20.
This order was issued in Guo’s absence during a hearing, with the former director unable to respond. Guo is set to appear in court again on March 12.
“ASIC sought the travel restriction orders due to concerns that Mr. Guo might leave the country while the investigation is ongoing,” the regulator stated.
The accusations against Guo “are quite serious,” remarked Justice Catherine Button in the federal court ruling.
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As the director, Guo is alleged to have transferred $1.69 million (2.6 million AUD) from a bank account containing ACX Exchange investor funds for personal investments. Furthermore, in 2019, Guo reportedly moved 21.11 Bitcoin (currently valued at around $1.3 million) to a private wallet under his control.
Blockchain Global
The failed cryptocurrency firm Blockchain Global went into liquidation in early 2020 and still owes creditors $37 million.
Blockchain Global, which operated ACX Exchange from January 2016 to December 2019, had liquidators appointed to manage the exchange’s closure in February 2022.
ASIC is also investigating Guo, along with Blockchain Global’s other directors, Xue Lee and Zijang Xu, for alleged violations of corporate law during ACX’s operations. Lee and Xu are believed to be residing abroad.
Justice Button noted Guo as the primary individual of interest remaining in Australia, potentially increasing the likelihood of recovering funds.
On January 29, Lee was charged by the U.S. Securities and Exchange Commission in relation to a $1.7-billion cryptocurrency fraud scheme known as “HyperFund.” Lee, along with associate Brenda Chunga, is accused of promoting membership packages with misleading claims of high returns from crypto mining and other ventures.
Lee also faces U.S. charges for conspiracy to commit securities and wire fraud.
The post Former Director of Blockchain Global Liang Guo Detained in Australia appeared first on Cryptonews.
