Blockchain Global, an Australian blockchain startup, is facing further trouble as the Australian Securities and Investments Commission (ASIC) has decided to investigate the company’s involvement in a series of failed cryptocurrency schemes. The ASIC will specifically focus on two directors of the company, Allan Guo, Sam Lee, and Ryan Xu, who have been accused of violations of the Corporations Act.
The allegations against the directors include breaches of trust, violation of their obligations as directors, and questionable transactions. These allegations were brought to light by the company’s liquidator, who referred the matter to the ASIC. However, the ASIC initially rejected the plea by the liquidator but has now decided to open an investigation.
This investigation comes in the wake of a separate investigation into the HyperVerse cryptocurrency investment scam, which is connected to Lee and Xu. HyperVerse promised investors significant profits but quickly raised suspicions about the legitimacy of their claims. It was later revealed that the purported CEO of HyperVerse, Steven Reece Lewis, might not be a real person.
The HyperVerse scam, according to crypto analysis company Chainalysis, resulted in a loss of $1.3 billion in 2022. The ASIC’s decision to investigate the collapse of Blockchain Global coincides with the discovery of a potential connection between the company’s records and the operation of HCash, a cryptocurrency associated with the Hyper investment scams. The liquidators of Blockchain Global found two debt transactions totaling $500,000 in the company’s primary bank account, which are now being traced for a potential correlation to HCash.
The downfall of Blockchain Global and the rise of cryptocurrency-related fraud highlight the ongoing lack of security and vulnerability in the crypto sector. Despite international regulators flagging the HyperVerse scheme as potentially fraudulent, the ASIC has faced criticism for not issuing a warning sooner.
As the investigation unfolds, it is still unclear whether the funds in the bank accounts were used for any illegal activities. The outcome of the ASIC’s investigation will be crucial in determining the accountability of the directors and the implications for the cryptocurrency industry in Australia.
FAQ:
1. What is the Australian Securities and Investments Commission (ASIC) investigating?
The ASIC is investigating the involvement of Blockchain Global, an Australian blockchain startup, in a series of failed cryptocurrency schemes. They are specifically focusing on two directors of the company, Allan Guo, Sam Lee, and Ryan Xu, who have been accused of violations of the Corporations Act.
2. What are the allegations against the directors?
The allegations against the directors include breaches of trust, violation of their obligations as directors, and questionable transactions.
3. Who brought these allegations to light?
The allegations were brought to light by the company’s liquidator, who referred the matter to the ASIC.
4. What other investigation is the ASIC involved in?
The ASIC is also involved in the investigation of the HyperVerse cryptocurrency investment scam, which is connected to directors Sam Lee and Ryan Xu. This scam resulted in a loss of $1.3 billion in 2022.
5. What potential connection has been discovered between Blockchain Global and HCash?
The discovery of a potential connection between Blockchain Global’s records and the operation of HCash, a cryptocurrency associated with the Hyper investment scams, has prompted further investigation. The liquidators found two debt transactions totaling $500,000 in the company’s primary bank account, which are now being traced for a potential correlation to HCash.
6. What is the significance of the ASIC’s investigation for the cryptocurrency industry in Australia?
The outcome of the ASIC’s investigation will be crucial in determining the accountability of the directors and the implications for the cryptocurrency industry in Australia. It highlights the ongoing lack of security and vulnerability in the crypto sector.
Definitions:
– Blockchain Global: An Australian blockchain startup that is currently under investigation by the Australian Securities and Investments Commission (ASIC) for its involvement in failed cryptocurrency schemes.
– Australian Securities and Investments Commission (ASIC): The regulatory body in Australia responsible for ensuring the fairness and transparency of the financial markets.
– Cryptocurrency: Digital or virtual currency that uses cryptography for secure financial transactions, control the creation of additional units, and verify the transfer of assets.
– Corporations Act: The key piece of legislation that governs the operations and regulation of companies in Australia.
– Liquidator: A person or entity appointed to wind up the affairs of a company that is being closed down or facing insolvency.
Suggested related links:
– Australian Securities and Investments Commission
– Chainalysis
The source of the article is from the blog elblog.pl