Ryan Xu, director of Blockchain Global, has been prohibited from leaving Australia amid an ongoing investigation into the collapse of the company’s cryptocurrency exchange, according to Crypto News. The Australian Securities and Investments Commission (ASIC) secured interim travel restraint orders from the Federal Court on October 20, which will remain effective until December 20.
ASIC Probe Targets Blockchain Global’s Failed Exchange and Missing Funds
The ASIC investigation focuses on Blockchain Global’s defunct ACX Exchange, which ceased operations in late 2019 following user reports of inaccessible funds. The company, which entered liquidation in February 2022, reportedly owes approximately A$58 million (USD 37.3 million) to unsecured creditors as of October 2023. ASIC’s formal probe into the company and its directors began in early 2024.
ASIC applied for the travel ban due to concerns that Xu might leave Australia during the investigation. The court will conduct an inter partes hearing on October 30, allowing all parties involved to present their case.
ASIC Targets Troubled Crypto Firms to Restore Market Credibility
This case is part of a broader effort by Australian authorities to enhance oversight of failed crypto ventures and recover funds for affected investors. ASIC has previously taken action against several digital asset firms that collapsed during the sector’s downturn from 2019 to 2022.
Blockchain Global was once a prominent entity in Australia’s blockchain industry, operating multiple crypto businesses and serving as a bridge between traditional finance and digital markets. However, its collapse has left creditors and customers facing significant potential losses.
Court Order Keeps Xu in Australia as ASIC Reviews Potential Law Breaches
ASIC’s investigation is assessing whether company directors violated corporate or financial laws in managing customer funds and maintaining solvency. Xu, a co-founder of Blockchain Global, is among several executives associated with the exchange. Although he has not been charged with any criminal offenses, the current court order is a civil measure to ensure his presence for ongoing proceedings.
The Federal Court will review the restraint order during the next hearing on October 30, with both ASIC and Xu’s legal representatives expected to present their arguments.
