The collapsed Australian cryptocurrency exchange has allegedly used customer funds to run the business.  According to a Sydney Morning Herald <a href="https://www.smh.com.au/business/markets/collapsed-cryptocurrency-exchange-used-customer-funds-for-business-loan-20221019-p5bqz3.html">article</a> on a court proceeding that examined the allegations of the exchange's liquidators, Blockchain  Global, the company that owned the bankrupt ACX crypto exchange, has utilized customer deposits to fund another area of its business rather than holding them in reserve.

Jin Chen, a former chief technology officer (CTO) who left the business in 2018 and is not facing investigation for any misconduct, told liquidators that co-founder of Blockchain Global Allan Guo had issued him instructions to move <a href="https://www.cryptoknowmics.com/news/robert-kiyosaki-recommends-all-investors-turn-to-the-bitcoin">bitcoin (BTC)</a> from customer accounts to other divisions of the company.
<h2>Under Scanner For Combining Customer Funds</h2>
The exchange is accused of combining customer funds into one pool, which is another indicator of weak supervision. During the hearing Chen was questioned that the ownership of this bitcoin by Customer A and this bitcoin by Customer B cannot be distinguished, is there a way to do so? He answered, "Yes".

The information was disclosed on Wednesday during the public liquidator's inquiries into the group before the Supreme Court of Victoria.

The exchange's creator, Blockchain Global, went out of business in October with a $50 million debt to creditors. Numerous Australian customers were among those who were unable to withdraw their funds because the exchange had prohibited withdrawals. Investigations into the loss of millions of dollars that clients had put are still ongoing.
<h2>Suspended its Plans to List on ASX Due to Regulatory Issues</h2>
Blockchain was formerly recognized as Bitcoin Global, a bitcoin mining company that put on hold its intentions to list on the ASX in 2015 after the corporate regulator ordered the company to address issues about its prospectus. These concerns included giving investors the idea that Malcolm Turnbull was sponsoring the company when he wasn't and its claims to be profitable when they weren't. By 2016, the organization had changed its image to become a cryptocurrency trading company where clients could deposit fiat money and then trade cryptocurrencies on the ACX market.

Australian Crypto Exchange ACX Allegedly Used Customer Funds to Run Business

Blockchain Global owned ACX crypto exchange and utilized customer deposits to fund another area of its business rather than holding them in reserve.

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Australian Crypto Exchange ACX Allegedly Used Customer Funds to Run Business

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