Australian Securities and Investments Commission v Guo

In the Federal Court of Australia, the Australian Securities and Investments Commission (ASIC) has applied for interim travel restriction orders against Mr Guo, a former director of Blockchain Global, pursuant to section 1323 of the Corporations Act 2001 (Cth). The application arises from an ongoing investigation by ASIC into alleged contraventions of sections 181–184 of the Corporations Act and sections 81–82 of the Crimes Act 1958 (Vic). The collapse of the ACX Exchange, operated by Blockchain Global, has left customers unable to withdraw their funds, prompting ASIC's investigation into Mr Guo's conduct during his tenure as a director.

The primary legal issue before the court was whether it was necessary or desirable to make interim travel restriction orders to prevent Mr Guo from leaving Australia. ASIC argued that such restrictions were essential to protect the interests of aggrieved persons, particularly given the potential for criminal prosecution of Mr Guo. The court considered the balance between Mr Guo's right to travel and the public interest in allowing ASIC to complete its investigation. The court also noted Mr Guo's significant ties to Australia, including his Australian Resident Return Visa, shared parenting responsibilities with his ex-wife, and his child residing in Melbourne.

After weighing the relevant factors, the court found that it was necessary and desirable to make the interim travel restriction orders sought by ASIC. The court acknowledged Mr Guo's right to travel but emphasised the importance of allowing ASIC to pursue its investigation without the risk of Mr Guo leaving the country. The orders include restrictions on Mr Guo leaving Australia, surrendering his passports, and applying for new travel documents until 20 August 2024 or until further order. The court granted the orders, noting that ASIC would need to serve the relevant documents on Mr Guo and that a more substantive hearing would follow.