Blockchain Global Review: forfeiting AUD 12 million in funds and ACX assets frozen by Supreme Court, the company is currently AUD 48.9 million in debt.
The organization had posed as the most solvent and largest exchange via its brainchild, ACX, all over Australia. After the appropriate authorities foiled the attempt to launder securities in the hotchpotch of DeFi/MLM, ACX is revealed to be at least twelve million Australian dollars in debt.
Headlines like these only cue the precarious loyalty programs of multi-level marketing platforms. One recurring tactic here is the unilevel compensation, besides other airdrops and bonuses.
How did Blockchain Global, the progenitor of ACX, a proven Ponzi, become entangled in a forty-nine million AUD debt pile? Perhaps a brief look at the company might answer this question. Read our Blockchain Global Review for details.
Blockchain Global Review: Overview
The company boasts an international presence with partners in Hong Kong, Malaysia, Singapore, Australia (in Melbourne), New York, and Colombia. It also seems to have launched in Asia, judging from the predominantly Asian operators on the umbrella front.
Also, the CEO of Blockchain Global is Sam Lee, designated as Founder on the official website.
The company derives credence from several projects with partners that include Collinstar Capital, Shape Capital, and Ironside Capital, citing a portfolio that stretches to globally-sourced blockchain executions.
Further, the platform employs (according to the site, of course) one hundred and seventy (170) blockchain experts in crucial regions, initiating community services like smart city, healthcare, and so on.
As per the finances, Blockchain Global supposedly put in $300 million in blockchain projects, intending to create a decentralized parallel to the status quo economics and commerce.
At this point, though, our Blockchain Global Review could reference the ACX scam as a seal to the company’s foresight. Unrelenting from its subsidiary’s failures, Blockchain Global alleges a regulatory cum trade draft sent to the Australian government.
There are no links to such correspondences, however. So, it amounts to nothing until the company could prove otherwise.
Does it have a prominent location?
The platform answers this question on the website. Here is a clip.
In 2014, Blockchain Global founded the 1100sqm Blockchain Centre as the world’s first nonprofit knowledge hub in Melbourne, Australia.
Who are the company sponsors?
Our Blockchain Global Review makes out IBM, Pacific Trustees, and Amazon as the sponsors. Note that this shows in an ineligible grey print set in white background, a convenient shroud to launder the platform as a beneficiary of legit global companies.
Also, it is unlikely that the platform enjoys such backing, given the financial pitfalls that assail it. The first of these issues is the decision to wind up the globe-trotting parent company with the branch in Australia, which ends in an AUD 12 million scams.
See the next section of this Blockchain Global Review for details.
Embroiled in an ACX $12 million Debt in the Supreme Court
ACX coopting MLM for traction and recruitment provides a context for this incidence. Such a scheme invariably leads to Ponzi, as in the locked drive tussle between ACX operators and the Australian Supreme Court.
Here is a brief prelude.
Before deciding to exit abruptly, ACX mustered all the MLM-style trope at its height. Since revenue channels plug in the wake of fund withdrawals, it writes an end to the subsidiary.
How did the operators, Allan Guo and Sam Lee, respond?
They wind up Blockchain Global, attempting to salvage inactivity. What sort of lull are we talking about here? Of course, it is the recruitment deposit. It leaves Blockchain Global probing liquid assets.
But then, the Supreme Court shows up, confiscating assets worth twelve million AUD, part of it locked in a hard drive.
Here is a perspective to the story
Investments decrease with increasing withdrawals. Facing bankruptcy, Blockchain Global hoards the remaining funds in the guise of remaining solvent.
The preferred phrase is wind up. But that does not improve the legal implications of the fraud one bit.
In Australia, as in all countries, winding up a company is never in remiss, nor does it sidestep/discards the stakeholders’ opinions. Our Blockchain Global Review finds the opposite in this platform.
While the investors go for the option, they met either firm rebuffs or evasions by Blockchain Global executives.
Court Freezes Assets, amidst Hopes of Remittances
As the issue dragged, the Supreme Court confiscated a hard drive, a priority asset that currently buffers the preceding between Blockchain Global executives on the one hand and the Supreme Court on the other.
Regardless, our Blockchain Global Review finds reports that the drive might not promise much. It does not account for outstanding debts accruing from unsecured loans to principal members of the company.
The total sum (including the stash in the hard drive) does not equal investors’ deposits. So, Blockchain Global is up to AUD 48 million in debt, as some reports allege.