Australia’s corporate regulator has 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) said on Wednesday that the Federal Court granted interim travel restraint orders against Xu, also known as Zijing Xu, on Oct. 20. The orders prohibit him from leaving or attempting to leave Australia until Dec. 20.
ASIC sought the restrictions on an ex parte basis, meaning Xu has not yet had the opportunity to respond in court. The matter will return for an inter partes hearing, where all parties can be heard, on October 30.
The investigation centers on Blockchain Global’s role in operating 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 Feb. 2022. Liquidators later told ASIC that the firm owed around A$58m ($37.3m) to unsecured creditors as of Oct. 2023. The regulator launched a formal probe 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.
The case marks another move by Australian authorities to tighten oversight of failed crypto ventures and recover funds for affected investors. ASIC has previously pursued actions against multiple digital asset firms that collapsed during the sector’s 2019-2022 downturn.
Blockchain Global, once a high-profile player in Australia’s blockchain scene, operated several crypto businesses 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 documents show that ASIC’s investigation is examining whether company directors breached corporate or financial laws in managing customer 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 offenses, and the court’s current order is a civil measure to ensure his availability for ongoing proceedings.
The Federal Court will reassess the restraint order at the next hearing on Oct. 30, where both ASIC and Xu’s representatives are expected to present their positions.
