Australia Sues Former Blockchain Global Exec Over Unpaid Customer Funds

The Australian Securities and Investments Commission has sued Allan Guo, a former executive of Blockchain Global, the parent company of the collapsed crypto exchange ACX, for $20 million in unpaid customer funds.

In a press release, ASIC stated that Guo will face court over allegations of multiple breaches in his role as a director of the crypto company.

Allegations Against Allan Guo 

Blockchain Global, launched around mid-2016, was once a pioneer in the Australian crypto scene. It was the parent company of the cryptocurrency exchange platform ACX, which collapsed in December 2019 after customers began reporting they were unable to withdraw funds. Following growing complaints from users, Blockchain Global was shut down in early 2020.

In 2021, the Victorian Supreme Court froze $12 million in ACX exchange funds. Investigations found that the company owed $20 million to customers, while ASIC alleges that Guo transferred millions of dollars in investor funds to top up his personal home loan and bank accounts.

According to court filings, Guo allegedly received payments and benefits from Blockchain Global without providing proper documentation or explanations for the transactions. These funds are believed to have been transferred while the company was in severe financial distress.

ASIC began investigating Blockchain Global in 2024. Previously, regulators had banned Guo from leaving Australia. In early 2024, the U.S. Securities and Exchange Commission (SEC) also sued Guo over allegations of defrauding investors through a company called HyperFund.

Pattern of Misconduct: ACX Case Echoes FTX and Other Crypto Scandals

The allegations against Allan Guo and the downfall of ACX are drawing comparisons to global crypto scandals such as FTX and Celsius, where customer funds were misused and key executives failed to implement basic financial controls. According to filings and public statements, Guo co-mingled customer funds with company accounts, a hallmark of mismanagement that mirrors the collapse of Sam Bankman-Fried’s empire.

The similarities to FTX’s collapse, where billions in customer assets were funneled into risky side ventures and personal purchases, have prompted further scrutiny into how Australian crypto firms were operating under the radar. As investigations unfold, the Guo and ACX case may serve not only as a warning but as a catalyst for long-delayed regulatory reform.

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