{"id":89697,"date":"2024-08-14T03:07:44","date_gmt":"2024-08-14T07:07:44","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=89697"},"modified":"2024-08-14T03:07:51","modified_gmt":"2024-08-14T07:07:51","slug":"asic-sues-operator-for-blockchain-upgrade","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/asic-sues-operator-for-blockchain-upgrade\/","title":{"rendered":"Australia’s ASIC Sues Stock Operator for Misleading Blockchain Upgrade Claims"},"content":{"rendered":"\n

ASIC, the corporate regulator of Australia<\/a>, filed a lawsuit against ASX, the market operator, on Wednesday, alleging that the blockchain-based Clearing House Electronic Subregister System (CHESS) replacement project was mismanaged.<\/p>\n\n\n\n

\"Australia's
Australia's ASIC Sues Stock Operator for Misleading Blockchain Upgrade Claims<\/figcaption><\/figure>\n\n\n\n

The lawsuit alleges that ASX mislead the market by falsely claiming that the project was on track in early 2022. Nevertheless, ASX disclosed that the project was likely to be postponed just six weeks later.<\/p>\n\n\n\n

Later that year, the ASX commissioned an independent evaluation through Accenture, which revealed substantial concerns regarding the scalability of the blockchain technology<\/a> that underpins the new system. These issues resulted in the project's suspension and a $250 million write-off.<\/p>\n\n\n\n

\n

ASIC has commenced proceedings in the Federal Court against Australia\u2019s 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\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> pic.twitter.com\/d3ZLUGMKSF<\/use><\/svg><\/span><\/a><\/p>— ASIC Media (@asicmedia) August 13, 2024<\/use><\/svg><\/span><\/a><\/blockquote>

In 1994, the ASX implemented CHESS, a system that was designed to maintain records of share ownership and facilitate share transactions.<\/p>\n\n\n\n

In 2015, the ASX initiated the development of a replacement system and incorporated blockchain technology in 2017. In February 2022, the ASX asserted that the new system would be operational by 2023, despite its numerous setbacks.<\/p>\n\n\n\n

The regulator asserts that ASX was aware of the project's delay. Nevertheless, it publicly stated the opposite, thereby presenting a distorted perspective on the project's advancement.<\/p>\n\n\n\n

The market's trust was undermined by ASX's misleading claims, according to ASIC Chair Joe Longo.<\/p>\n\n\n\n

ASIC Chair Joe Longo stated, “ASX's statements are fundamental to the public's confidence in the integrity of our markets.” “We are of the opinion that the ASX Board<\/a> and senior executives at the time collectively failed.”<\/p>\n\n\n\n

“Companies and market participants depend on the information the ASX provides regarding its operations in order to make their own investments and decisions.” We anticipate that the Australian Securities Exchange (ASX) will serve as an investment and listing platform that inspires confidence. There are extensive repercussions throughout the market when the ASX fails to meet expectations.<\/p>\n\n\n\n

Longo asserted that the project's delay and eventual cessation in November 2022 caused significant financial losses for the ASX and investors who had invested based on the company's assertions regarding the project's progress and launch timeline.<\/p>\n\n\n\n

ASX Responds to ASIC's Lawsuit<\/h2>\n\n\n\n

Helen Lofthouse<\/use><\/svg><\/span><\/a>, the CEO of ASX, recognized the gravity of the litigation initiated by ASIC. She stated that the bourse operator is assisting the regulator in its investigation and that they are currently examining the allegations.<\/p>\n\n\n\n

ASX previously paid a A$1.05 million fine ($695,415) in March 2024 for separate market integrity rule breaches, although ASIC has not yet specified the penalty it seeks.<\/p>\n","protected":false},"excerpt":{"rendered":"

ASIC, the corporate regulator of Australia, filed a lawsuit against ASX, the market operator, on Wednesday, alleging that the blockchain-based Clearing House Electronic Subregister System (CHESS) replacement project was mismanaged. The lawsuit alleges that ASX mislead the market by falsely claiming that the project was on track in early 2022. Nevertheless, ASX disclosed that the […]<\/p>\n","protected":false},"author":36,"featured_media":89703,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[2285,21284,21283],"class_list":["post-89697","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-asic","tag-blockchain-upgrade","tag-stock-operator"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/08\/ASIC.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/89697","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=89697"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/89697\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/89703"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=89697"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=89697"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=89697"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}