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Crypto Reporter
Shalini Nagarajan
Crypto Reporter
Shalini Nagarajan
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Australia the corporate regulator barred Blockchain Global director Ryan Xu from leaving the country while it investigates the collapse of a crypto exchange operated by the company.
The Australian Securities and Investments Commission (ASIC) he said on Wednesday that the Federal Court granted the interim travel restriction order against Xu, also known as Zijing Xu, on October 20. The order bans him from leaving or attempting to leave Australia until December 20.
ASIC sought restrictions on a ex parte base, meaning Xu has not yet had the opportunity to respond in court. The matter will return for a between parties hearing, where all parties can be heard, on October 30.
ASIC Probe Targets Blockchain Global’s Failed Exchange and Missing Funds
The investigation centers on Blockchain Global’s role in the operation of the ACX Exchange, a now-defunct crypto platform that allowed customers to buy, sell and store digital assets. The exchange collapsed in late 2019 after users began reporting difficulties accessing their funds.
Blockchain Global entered liquidation in February 2022. The liquidators later told ASIC that the company owed about A$58 million ($37.3 million) to unsecured creditors by October 2023. The regulator launched a formal investigation into the company and its directors in early 2024.
ASIC said it applied for the travel ban over concerns Xu could leave the country while the investigation is ongoing.
ASIC Targets Troubled Crypto Firms to Restore Market Credibility
The case marks another move by Australian authorities to strengthen oversight of failed crypto companies and recover funds for affected investors. ASIC has already pursued actions against several digital asset firms that collapsed during the fall of the 2019-2022 sector.
Blockchain Global, once a high-profile player in Australia’s blockchain scene, has operated several crypto-companies and positioned itself as a bridge between traditional finance and emerging digital markets. Its collapse, however, left creditors and customers facing millions in potential losses.
Court Order Keeps Xu in Australia as ASIC Reviews Potential Violation of Law
Court documents show that ASIC’s investigation is looking into whether the firm’s directors breached corporate or financial laws in managing client funds and maintaining solvency.
Xu, a co-founder of Blockchain Global, was one of several executives associated with the exchange. He has not been charged with any criminal offences, and the current court order is a civil measure to ensure his availability for ongoing trials.
The Federal Court will reassess the restraining order at the next hearing on October 30, where representatives of ASIC and Xu are expected to present their positions.
