Over $50 Million in Debt as Blockchain Global’s Cryptocurrency Exchange Collapses

Over $50 Million in Debt as Blockchain Global's Cryptocurrency Exchange Collapses

The liquidator overseeing the insolvency of ACX.Io, a subsidiary of Blockchain Global and considered one of Australia’s early cryptocurrency exchanges, has raised worries about capability breaches of the Corporations Act concerning one former and two present day directors. The Australian Securities and Investments Commission (ASIC) has indicated that it’s going to take action if enough evidence is located.

The fall apart of ACX.Io, a cryptocurrency buying and selling platform released in 2016, has led to over $50 million in wonderful money owed to creditors. Some traders have expressed dissatisfaction with the regulatory response, believing it has not competently covered their pastimes.

ACX.Io allowed buyers to exchange digital currencies, but clients lost get admission to to their funds at the exchange in late 2019. Liquidator Andrew Yeo, from Pitcher Partners, turned into appointed to investigate the whereabouts of clients’ funds and digital belongings, as well as the enterprise affairs of Blockchain Global while it entered voluntary management in October 2021.

In his contemporary document to creditors, Yeo highlights capability misuse of clients’ finances. He has written to ASIC recommending an investigation into directors Sam Lee, Zijing ‘Ryan’ Xu, and former director Liang ‘Allan’ Guo for capability breaches of the Corporations Act.

Yeo discovered that investor price range had been mixed with company funds and used for investments in different firms and personal expenses, which includes repaying domestic loans with out consumer knowledge. The business to start with operated as a crypto mining assignment, proving profitable in its early days.

Creditor claims are expected to surpass $50 million, with approximately half of these claims regarding character investors. It is predicted that extra claims will emerge in the future.

About Maria Morgan

Maria Morgan is a full-time cryptocurrency journalist at Coinography. She is graduate in Political Science and Journalism from London, her writing is centered around cryptocurrency news, regulation and policy-making across the glob.

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