Australia Sues Former ACX Crypto Exchange Director Over Alleged Misuse of Customer Funds

Australia’s top financial regulator is taking legal action against Allan Guo, the former executive behind now-defunct cryptocurrency exchange ACX, for alleged breaches of corporate duties and mismanagement of user funds.

The Australian Securities and Investments Commission (ASIC) announced civil penalty proceedings against Guo, claiming he mishandled customer assets, failed to keep accurate financial records, and misrepresented key dealings while overseeing ACX’s operations. The platform, which was run by Blockchain Global, ceased operations in 2019, leaving customers locked out of their funds.

According to ASIC, ACX customers are owed more than AU$22.7 million (around $14.6 million USD) in unsecured creditor claims. The collapse of the exchange has been one of the more significant failures in Australia’s crypto landscape, prompting widespread concern over investor protections and regulatory oversight.

ASIC’s investigation into Blockchain Global began in January 2024, following a detailed report filed by the company's liquidators in late 2023. The report outlined possible violations of the Corporations Act by Guo and other company leaders. In response, ASIC issued a travel ban on Guo in February 2024, but records show he had already left Australia in September 2024 after the ban was lifted. He has not returned since.

The regulator confirmed that investigations are also ongoing into two other former directors of Blockchain Global: Samuel Xue Lee and Ryan Zijang Xu.

While the legal process unfolds, ASIC's move reflects a broader effort by global regulators to bring more accountability to the crypto industry—especially as it grapples with the aftermath of high-profile exchange failures and the risks they pose to retail investors.