What happened?
Australia’s corporate regulator ASIC secured interim travel restraint orders preventing Blockchain Global director Ryan Xu from leaving the country while it probes the collapse of the ACX crypto exchange. The exchange collapsed in late 2019 and Blockchain Global entered liquidation in February 2022, with liquidators saying the firm owed about A$58 million to unsecured creditors. The orders were granted ex parte and the case returns for a full hearing on October 30, with the restraint in place until December 20.
Who does this affect?
The immediate impact is on Ryan Xu and other Blockchain Global directors, who are now subject to legal scrutiny and court proceedings. Former ACX customers and unsecured creditors—who are reportedly owed roughly A$58 million—stand to be most directly affected as the investigation could influence recovery outcomes. More broadly, employees, investors, counterparties and anyone with exposure to Blockchain Global’s failed crypto businesses will be watching the outcome closely.
Why does this matter?
This case signals tougher regulatory enforcement in Australia, which could restore some investor confidence by showing authorities will pursue accountability and attempts to recover missing funds. It also raises the bar for compliance and oversight in the crypto sector, potentially increasing costs and scrutiny for other firms and making some investors more cautious. In the short term the news may weigh on sentiment for Australian crypto-related stocks and platforms, but in the longer term it could help stabilize the market by deterring bad actors and improving transparency.