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$50 Million In Crypto Vanishes From Aussie Operation

Melbourne cryptocurrency trading marketplace Blockchain Global went into administration in October, and now roughly $50 million in digital currency is missing.

Administrators originally thought $21 million in missing assets were owing, but more than double this appears to be owing to creditors, who are trying to track down the fortune.

Andrew Yeo, who was brought in to handle the administration, said 107 proofs of claim had been filed to date, meaning Blockchain Global owe at least $48.9 million to unhappy creditors.

Documents filed with ASIC show that at least one creditor is owed a whopping $8.3 million.

Yeo told the Victorian Supreme Court that Blockchain Global “is a party to four ongoing court proceedings’’ which “include allegations that significant sums of cryptocurrency are unaccounted for’’.

Former director Allan Guo claims that crypto belonging to Blockchain Global can only be accessed through a laptop that was allegedly stolen in China.

“Mr Guo confirmed that he had previously had access to the wallet that contained the cryptocurrency displayed in the company’s balance sheet,’’ the court judgment reads.

“He informed Mr Yeo’s staff that before the onset of the Covid pandemic, in late 2019, he was in China and his belongings were stolen.

“Amongst the stolen items was his laptop, which contained the credentials for accessing the wallet, and therefore the crypto­currency it held.

“Mr Yeo’s staff requested Mr Guo to provide evidence in respect of the alleged theft of the laptop. Mr Guo said he would provide a police report but this report has not been received.’’

Yeo told The Australian, “there is no doubt that the recovery of cryptocurrency requires a novel approach compared to most traditional assets.

“It is certainly different to the recovery of funds from bank accounts. That is not to suggest that the recovery of such cryptocurrency is impossible.’’

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