The Australian Securities and Investments Commission (ASIC) has taken significant legal action against Zijing Ryan Xu, the director of Blockchain Global Limited, amid an ongoing investigation into the collapse of a major crypto asset exchange. The document provides a justification for the fact that the Federal Court of Australia has issued interim travel restraint orders, preventing Xu from leaving the country until late December 2025.
Background of the Case
The orders were granted on October 20, 2025, on an ex parte basis, meaning Xu was not present in court at the time of the ruling. A subsequent inter partes hearing is scheduled for October 30, where all involved parties will have the opportunity to present their cases. ASIC's investigation centers on Blockchain Global's role in the ACX Exchange, which failed in late 2019, leaving customers unable to withdraw their funds.
Financial Implications
Following the liquidation of Blockchain Global in February 2022, liquidators reported to ASIC that the company owed around A$58 million (approximately US$37 million) to unsecured creditors as of October 2023. The regulator's request for a travel ban was prompted by concerns that Xu might leave Australia before the investigation concludes. ASIC is examining potential breaches of corporate and financial laws by Xu and other directors regarding the management of customer assets and the company's solvency.
Legal Context
This court order is a civil measure designed to ensure Xu's availability for ongoing legal proceedings, rather than a criminal charge. ASIC has intensified its scrutiny of failed crypto firms in Australia, particularly following a series of collapses between 2019 and 2022 that resulted in substantial losses for investors.
Xu's Role in the Crypto Landscape
Once a prominent figure in the Australian blockchain landscape, Xu co-founded Blockchain Global, which was marketed as a link between traditional finance and the digital economy. However, the company's downfall and the increasing claims from creditors have turned it into one of the most notable failures in the history of Australia's cryptocurrency sector.
In a notable development, SoftBank and OpenAI have launched a joint venture, SB OAI Japan, aimed at transforming various sectors with advanced AI technologies. This initiative contrasts with the ongoing legal issues faced by Blockchain Global's director, Zijing Ryan Xu. For more details, see read more.
