Australia’s corporate regulator has barred Blockchain Global director Ryan Xu from leaving the country as it investigates the 2019 collapse of the company’s ACX Exchange, where users reported being unable to withdraw funds.
Travel Ban Imposed on Xu
The Australian Securities and Investments Commission (ASIC) announced on Wednesday that the Federal Court issued interim travel restraint orders against Xu—also known as Zijing Xu—on October 20. These orders prevent him from departing Australia until December 20.
ASIC obtained the restrictions on an ex parte basis, without Xu’s input. A full inter partes hearing, allowing both sides to argue, is scheduled for October 30.
The move stems from concerns that Xu might flee during the ongoing probe, ensuring his availability for proceedings.
Probe Focuses on ACX Exchange Collapse
The investigation targets Blockchain Global’s management of the ACX Exchange, a defunct platform for buying, selling, and storing digital assets. It shut down in late 2019 amid widespread user complaints about frozen withdrawals.
The company entered liquidation in February 2022. As of October 2023, liquidators reported debts of approximately A$58 million ($37.3 million) to unsecured creditors, including affected customers.
ASIC formally launched its inquiry into the firm and its directors in early 2024, scrutinizing potential breaches of corporate and financial laws related to customer fund handling and solvency.
Xu, a co-founder of Blockchain Global, has not faced criminal charges. The current order is a civil precaution.
Broader Crackdown on Crypto Failures
This action aligns with ASIC’s intensified oversight of troubled digital asset firms from the 2019–2022 crypto downturn, aiming to recover investor funds and rebuild market trust.
Once a prominent bridge between traditional finance and blockchain, Blockchain Global’s downfall has left millions in losses for creditors and users. The Federal Court will review the travel ban on October 30, where ASIC and Xu’s team will present their cases.
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