Liang ‘Allan’ Guo labeled a flight risk, mandated to surrender passports.
A Chinese citizen and former director of Australian crypto firm Blockchain Global, facing allegations of a $58m collapse, has been prohibited from exiting the nation. The Australian Securities and Investments Commission obtained an interim travel restriction in the federal court on February 20, citing concerns about flight risk. Liang “Allan” Guo has been instructed to surrender any passports to the court. As the hearing proceeded in Guo’s absence, he was unable to immediately address the ruling.
Liquidators referred Guo, Sam Lee, and Ryan Xu to Asic for possible breaches of the Corporations Act. Asic is currently investigating these allegations.
Lee and Xu were implicated in the HyperVerse crypto investment scheme, which allegedly defrauded investors worldwide of US$1.89bn. This scheme was the focus of a Guardian Australia investigation. Guo, however, is not thought to have been involved in the HyperVerse scheme.
Lee, currently residing in Dubai, faces charges in the US related to the HyperVerse scheme, characterized by the US Securities and Exchange Commission as a “pyramid and Ponzi scheme.” He has yet to address these charges.
In a federal court ruling released on Wednesday, Justice Button approved the restriction on Guo’s departure from Australia until August 20, citing the gravity of the accusations against him.
These allegations include purportedly diverting investor funds for personal use.
“The judgment stated that, during his tenure as director, Mr. Guo transferred $2.6 million from a bank account containing investor funds, some of which were directed towards his personal mortgage and personal bank account,” ASIC also remarked.
ASIC also highlighted Mr. Guo’s possession of 23.11 bitcoins, valued at approximately $1.8 million, which were assets of Blockchain Global. These bitcoins were allegedly transferred into a cryptocurrency wallet controlled by Mr. Guo on December 8, 2019.
ASIC argued that since the other directors of Blockchain Global had departed Australia shortly after its collapse, Guo was “the sole individual closely associated with Blockchain Global’s affairs who remains in Australia.”
“The judgment noted that ASIC foresees interviewing or examining Mr. Guo as crucial to its investigation, which it expects may lead to the referral of evidence to the Commonwealth Director of Public Prosecutions,” the statement added.
