Australia Blocks Blockchain Global Director From Departing the Country
Sydney – Australian authorities have prevented Blockchain Global director Peter Hodgson from leaving the country, escalating scrutiny of the cryptocurrency firm amid ongoing investigations into its operations and financial dealings. Hodgson was stopped at sydney Airport on Tuesday, with border officials acting on a court order, according to a statement from the Australian Federal Police (AFP).
The move signals a deepening probe into Blockchain Global, a once-prominent player in Australia’s cryptocurrency landscape, which collapsed into voluntary management in February 2023 owing creditors approximately AUD $140 million (USD $91 million). The AFP’s actions are aimed at preserving assets and ensuring Hodgson’s availability for further questioning related to potential breaches of corporate law and possible insolvency offenses. This case highlights the increasing regulatory pressure on the cryptocurrency sector in Australia and the potential consequences for company directors facing financial scrutiny.
Hodgson’s travel ban stems from an examination into allegations of improper transfer of funds and potential mismanagement within Blockchain Global. The AFP executed search warrants at several properties linked to Hodgson and the company in March, seizing documents and electronic devices. Authorities are focusing on transactions involving the company’s digital asset holdings and its Australian Cryptocurrency exchange (ACX) platform.
“The AFP is committed to investigating allegations of financial crime and holding individuals accountable for their actions,” a spokesperson for the AFP stated. “This includes ensuring that those involved in the administration of companies comply with their legal obligations.”
Blockchain global’s administrators,Jirsch Sutherland,are continuing to investigate the company’s financial affairs and are working to recover assets for creditors. The administrators have previously expressed concerns about the lack of transparency surrounding certain transactions and the difficulty in tracing the company’s digital assets.
The Australian Securities and Investments Commission (ASIC) is also involved in the investigation, focusing on potential breaches of director’s duties. The case is being closely watched by industry observers, who beleive it could set a precedent for future enforcement actions against cryptocurrency companies and their executives in Australia. Hodgson has not yet publicly commented on the travel ban or the allegations against him.
