Australian Crypto Exchange ACX.io Under Scrutiny from Crypto Community as Possible Exit Scam

ACX, boasted as Australia’s “most liquid Bitcoin exchange,” has come under fire multiple times this year from concerned cryptocurrency traders and platform users who report that they are unable to withdraw funds.

Discussions on popular media platform Reddit concerning the trading platform note that many users claim to be unable to withdraw cryptocurrency funds, citing empty public hot wallet addresses and complaints filed with the Australian Financial Complaints Authority (AFCA).

ACX.io was ejected from the Blockchain Australia industry body subsequent to an internal disciplinary process. The trading platform, supported at launch by Blockchain Global Limited (BGL), is currently the target of a group of cryptocurrency users that plan to file a class-action lawsuit against key stakeholders of ACX.io, including Sam Lee, Allan Guo, and Wenyong Huang. 

Concerns of ACX Exit Scam Increase

Traders and cryptocurrency investors active on the ACX trading platform have remained vocal on social media throughout 2020, claiming that the Melbourne ACX office is “completely deserted.”

In January 2020, the exchange was subject to an “audit” announced on the website, which stated that withdrawals were “temporarily disabled”

“Dear ACX customers we are going through the audit process with ACX hot and cold wallet. During this time, the deposit and withdrawal functions will be temporarily disabled.”

Blockchain Global Will Pay for Legal Action on Behalf of Customers

In March 2020, Blockchain Global published an announcement announcing that it had received multiple complaints regarding the ACX platform, noting that ACX was launched with the assistance of accelerator funding during an incubation period, which ended in December 2017. 

All wallet management thereafter, according to the Blockchain Global Statement, was handled by a “Blockchain Tech PTY LTD” a company established in March 2017 owned by “Blockchain Jet PTY LTD.” Blockchain Global, states the announcement, has had no access to customer funds or exchange operations, and had not received any shareholder updates or management visibility up to the date of the announcement.

Interestingly, Blockchain Global stated in the same announcement that if ACX were unable to deliver a timeline in which all withdrawal requests could be met or a litigation process to reveal contracts between specific stakeholders could not deliver transparency, Blockchain Global itself would fund legal fees for the liquidation of all related entities in order to return customer funds.