BGL ‘Blockchain Global’, the parent company of the renowned Australian cryptocurrency exchange ACX, has declared bankruptcy with outstanding debts of $15 Mln’s.
Solely three days later, companies were ordered to expose the full compass of means held locally and abroad but failed to meet the 30th Sept. 30 deadline.
The Australian Financial Review reported that BGL has since entered voluntary administration, with a figure of $15 Mln owed to creditors. BGL’s CEO Sam Lee explained that he stepped down as a director in March 2019, but still retains the power of the brand.
Lee de-emphasized his current part at BGL, adding that:
“(I) was reappointed on April 12, 2020, to deal with matters after the company check (d) to have any operations, as there are no operations, there were no crucial business opinions made, debt introduced during my absence wasn’t suitable to be negotiated.”
Speaking on the establishment’s voluntary administration, Lee again receded himself from BGL and said that the decision from the being directors is “ in the stylish interest of creditors and shareholders.”
“ I abstained from all decision-making after my appointment as I didn’t have enough visibility to make informed opinions,” he added.
ACX suddenly shut down operations and set stoner accounts in early 2020, leading to around 200 investors claiming losses of a combined $7.4 Mln.
The platform was instantly thrown out of Blockchain Australia and its digital currency license was abandoned by AUSTRAC.
While ACX investors had renewed stopgap of recouping their finances following the snap order on the hard situation, the collapse of BGL has left effects much more uncertain.
“ It’s gotten so confused we’re left wondering what the hell is going on,” an anonymous investor said.
The directors’ report on BGL says that it holds $7.77 Mln worth of asstes, and is owed $ $598,907 is not secured debts, with solely $$259,620 allowed to be recoverable.