Blockchain Global millions used for exotic crypto, personal payments: Court told

Guo told the court Blockchain Global didn’t keep any formal accounting records of the withdrawals, instead relying on standard bank statements to keep track of the huge flow of funds it was overseeing.

“That is the lack of experience,” Guo told the court.

The court heard that Blockchain Global, despite being a successful exchange with thousands of customers, kept being “debanked” by various banks, a process where a bank stops dealing with a customer because it was working in the cryptocurrency industry.

To overcome its debanking problem, the court heard Blockchain Global used companies set up in the names of Guo’s mother and then mother-in-law to set up bank accounts from the group to make its banking process easier.

“You used your mother and your mother-in-law as directors so as to better hide the fact that these accounts were being used for cryptocurrency trading?” asked Silver.

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“Not hide… but provide the service helping the exchange,” Guo said in his response.

Guo also told the court Blockchain Global established another subsidiary in the name of Guo’s then wife to obtain an Austrac registration.

Guo explained the new entity was created with his wife at the helm to smooth out the process with Austrac and once it won its licence the entity was transferred into his name.

“The structure is too complicated. Too many people, too many shareholders etcetera, it was just easier use this entity, a new entity, to carry on (the process of applying for an Austrac registration),” Guo said.