Key Takeaways:
- ASIC Lawsuit: Australia’s ASIC has filed a lawsuit against ASX Limited for misleading statements regarding a failed blockchain project.
- Financial Impact: The failed project resulted in a write-down of approximately A$250 million, with ASX facing potential fines exceeding A$500 million.
- Leadership Under Fire: ASX CEO and Chairman face scrutiny, with calls for Chairman Damian Roche to resign.
Australia’s Securities and Investments Commission (ASIC) has filed a lawsuit against ASX Limited, Australia’s largest stock exchange, over misleading statements regarding its failed blockchain project intended to replace the CHESS system.
ASIC alleges that ASX’s board and senior executives collectively failed by issuing deceptive claims about the project’s progress, despite its eventual cancellation in November 2022 after an Accenture review revealed significant design challenges.
The corporate watchdog is suing ASX Limited, the operator of our sharemarket. ASIC has accused the securities exchange of misleading the market by lying about the true status of a critical technology upgrade. https://t.co/OF81oZXOfr #ASX #7NEWS pic.twitter.com/asawLUJLoz
— 7NEWS Sydney (@7NewsSydney) August 14, 2024
The failed project led to a write-down of approximately A$250 million.
ASX now faces potential fines exceeding A$500 million.
ASIC has commenced proceedings in the Federal Court against Australia’s largest market operator, ASX Limited, for allegedly making misleading statements related to its Clearing House Electronic Subregister System (CHESS) replacement project https://t.co/yyruQ5PpFB pic.twitter.com/d3ZLUGMKSF
— ASIC Media (@asicmedia) August 13, 2024
ASX CEO Helen Lofthouse acknowledged the seriousness of the situation, while ASIC Chair Joe Longo emphasized the erosion of market trust due to ASX’s actions.
There have been calls for ASX Chairman Damian Roche to resign amid the controversy.
About The Author
Adam Morris, the co-founder of Crypto Head and a respected crypto expert, offers insightful commentary and analysis on cryptocurrency, NFTs, and the evolving digital landscape.
His extensive experience and features in top-tier publications like Forbes and CNN underscore his deep understanding of the crypto world and its future potential.
Check Adam out on: