Crypto king Liang Allan Guo wants passport back, tells court

The last director of a failed Australian cryptocurrency firm remaining in the country after his colleagues fled has claimed he is broke and argued in court his passport should be given back.

Blockchain Global founder Allan Guo (left) outside the Federal Court with his solicitor George Tsogas (right) and barrister Jordan Schulz (front) on March 12. Picture: Angelica Snowden

The last director of a failed Australian cryptocurrency firm remaining in the country has after his colleagues fled has claimed he is broke and argued in court his passport should be returned to him, despite a fresh investigation into his alleged conduct and the company owing punters $59m.

Liang “Allan” Guo appeared at the Federal Court in person on Tuesday while his lawyers argued travel restrictions placed on him, including having his Chinese passport confiscated, are not necessary while the Australian Securities & Investments Commission investigate his alleged involvement in the collapse of Blockchain Global.

He declined to comment when approached.

Federal Court judge Catherine Button banned Mr Guo from leaving Australia for six months in February amid claims he spent part of $2.6m worth of investor funds on his personal home loan during a hearing in which he was not involved, and orders banning him from leaving the country were delivered “ex parte”.

Justice Button also said ASIC accused Mr Guo of retaining 23.11 bitcoins, worth about $1.8m, which belonged to Blockchain Global but were transferred into a cryptocurrency wallet “controlled by Mr Guo” on December 8, 2019.

ASIC is also investigating two other directors of Blockchain Global, Samuel Xue Lee and Zijang “Ryan” Xu over their roles in the collapse of the exchange, but they are no longer in the country.

Blockchain Global started operating a cryptocurrency exchange platform, known as ACX Exchange in 2017 where customers could buy, sell and store cryptocurrency.

About two years later, the platform collapsed and punters could not withdraw their funds.

It’s understood 151 investors have claimed they lost $58.7m in the scheme, and 11 other creditors — including related party claims from loans — have lost $35.8m in the collapse.

Blockchain Global appointed voluntary administrators in October 2021, and in February 2022 liquidators were appointed.

Mr Guo’s barrister Jordan Schulz there is no evidence the purpose of ASIC’s investigation is to help “potential aggrieved persons” recover the money they lost.

“The plaintiffs examination … (is) directed at compiling a brief of evidence for the (Commonwealth Director of Public Prosecutions) for possible criminal prosecution of the defendant. This … is not a purpose which would permit making orders,” he said.

As well, Mr Schulz said Mr Guo’s father lives in China and his ex-wife and child reside in Melbourne. Mr Guo has no immediate plans to travel to China, Mr Schulz said.

“(There is a) lack of specific evidence … that the defendant might be absent or unable to participate and disrupt the investigation. It is put as a generality. There is no evidence of when an investigation might take place,” he said.

Barrister for ASIC Felicity Bentley said ASIC’s investigation kicked off two months ago, and it was not a “significant leap” for the court to find “that an examination of Mr Guo as to these matters might improve the process of aggrieved persons recovering monies”.

“Unless Guo can establish a (there is a) significant detriment to him … (the) balance is in favour of keeping the orders in place,” she said.

She also said Mr Guo claimed in an affidavit he is “impecunious”, which means having little or no money, but this was not backed up by any documentary evidence other than a statement of assets and liabilities prepared by Mr Guo himself.

Finally, Ms Bentley said if Mr Guo “does come across a specific need to travel, then he has liberty to apply”.

Justice David O’Callaghan reserved his decision to deliver within a few weeks.