Australian regulators have imposed a travel ban on Blockchain Global director Ryan (Zijing) Xu as investigations intensify into the company’s collapse and potential corporate misconduct linked to its defunct crypto exchange ACX.
Key Takeaways:
- ASIC secures interim travel restraint orders against Blockchain Global director Ryan Xu amid the ongoing corporate misconduct probe.
- The investigation centers on Blockchain Global’s failed crypto exchange ACX, which owes roughly A$58 million to creditors.
- Xu’s case will move to a full court hearing, where both his representatives and ASIC will present their arguments.
The Australian Securities and Investments Commission (ASIC) has intensified scrutiny of Blockchain Global by applying for interim travel restrictions against director Zijing (Ryan) Xu. The regulator is investigating potential breaches of directors’ duties related to the collapse of the ACX crypto asset exchange, which left investors and creditors at significant financial risk.
ASIC emphasized that these measures are civil tools designed to ensure that individuals with critical information remain available while investigations continue. No criminal charges have been filed against Xu at this stage.
Court Imposes Travel Restraint Orders
On October 20, the Federal Court approved interim travel restraint orders, preventing Xu from leaving Australia until at least December 20 unless the court decides otherwise. The initial application was made ex parte, meaning Xu was not present during the decision.
Snapshot of Xu’s court order from Australia’s federal court. Source: ASIC
A follow-up inter partes hearing will allow both Xu’s legal team and ASIC to present their arguments regarding the necessity of the travel restriction. The order ensures that Xu remains available while ASIC continues its probe into alleged mismanagement and creditor losses from the ACX collapse.
Details Behind the Ongoing Corporate Misconduct Probe
Blockchain Global has become a popular exchange in Australia’s early cryptocurrency scene, which operated ACX and several other blockchain ventures before entering liquidation in 2022. Its financial downfall was allegedly due to mismanagement and poor accounting practices.
ASIC’s ongoing investigation seeks to determine whether Xu and other directors breached their duties or misused investor and customer assets. While the authority has not yet filed any criminal charges, the travel ban suggests that that the inquiry is a serious matter that needs further investigation,
An ASIC spokesperson emphasized that such travel restrictions are standard in complex investigations where a person of interest may hold key information or documents relevant to the case. Xu’s legal representatives have not yet issued a public statement regarding the order.
Market Reaction and Crypto Sentiment
As of this writing (10:00AM UTC), Bitcoin (BTC) is trading at approximately $113,078, showing a 1.2% drop over the past 24 hours, while Ethereum trades at $4,001.02, which also shows intraday price decrease of around 2.8%. Other major cryptocurrencies recorded mild declines, reflecting general market weakness rather than direct impact from the ASIC investigation.
What’s Next for Blockchain Global and Xu?
The Federal Court is expected to revisit Xu’s travel restriction during the next hearing, where ASIC will present further evidence and Xu’s counsel will argue for its removal or modification. If ASIC’s investigation uncovers sufficient evidence of misconduct, it may file civil penalty proceedings or refer the matter for potential criminal prosecution.
For Australia’s digital asset industry, the case marks another critical test of regulatory enforcement. As ASIC and other agencies tighten oversight, directors of crypto exchanges and blockchain firms are likely to face increased scrutiny regarding transparency, governance, and client fund management.
Summary
ASIC obtained interim travel restraints preventing Ryan (Zijing) Xu from leaving Australia amid its probe into Blockchain Global and the collapsed ACX exchange. Markets dipped broadly, but the move reflects civil measures to secure cooperation while investigations continue.
