Written by Ezra Reguerrastaff writerReviewed by Yohan Yunstaff editor

Written by Ezra Reguerrastaff writer

Reviewed by Yohan Yunstaff editor

ASX shareholder plans to sue former directors over failed blockchain project

Latest NewsPublishedAug 13, 2026

Australia’s Failed Blockchain Project Faces Renewed Scrutiny

The Australian Securities Exchange (ASX) is facing renewed governance scrutiny over its failed blockchain-based CHESS overhaul. A shareholder plans to sue former ASX directors over alleged breaches of duty connected to the project. This move could test whether shareholders can hold former leaders accountable for overseeing one of Australia’s costliest financial-technology failures.

The ASX began exploring a replacement for its Clearing House Electronic Subregister System (CHESS) in 2016, selecting a distributed-ledger system developed with Digital Asset. However, the project was repeatedly postponed and eventually abandoned in May 2023. The Australian Securities and Investments Commission (ASIC) sued ASX in August 2024, alleging it lacked a reasonable basis for telling the market that the project was “progressing well” and on track for an April 2023 launch.

Consequences of the Failed Project

In June 2026, ASX admitted to misleading conduct linked to the blockchain replacement project. The Federal Court ordered the company to pay a $14.4 million penalty and $2.1 million toward ASIC’s costs. This incident highlights the importance of transparency and accountability in the financial sector, particularly when it comes to innovative technologies like blockchain.

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Failed CHESS overhaul draws regulatory action

ASX began exploring a replacement for its Clearing House Electronic Subregister System, or CHESS, in 2016 and selected a distributed-ledger system developed with New York-based Digital Asset. In December 2017, ASX was expected to become the first securities exchange to use blockchain for its core services. 

The intended launch was repeatedly postponed. In November 2022, ASX paused the project after an Accenture review found significant problems with its design and ability to meet the exchange’s requirements. In May 2023, ASX had formally abandoned blockchain for the replacement and would consider more conventional technology. 

Related: Australia orders Cryptolink Bitcoin ATMs offline over ‘basic reporting’ failures

The Australian Securities and Investments Commission (ASIC) sued ASX in August 2024, alleging it lacked a reasonable basis for telling the market in February 2022 that the project was “progressing well” and on track for an April 2023 launch. At the time, ASIC called the episode a collective failure by ASX’s board and senior executives. 

In June 2026, ASX admitted to misleading conduct linked to the blockchain replacement project. On July 3, the Federal Court ordered the company to pay a $14.4 million penalty and $2.1 million toward ASIC’s costs, closing the regulator’s case weeks before Rosherville notified the exchange of its proposed action against former officials. 

Magazine: Inside the fake crypto startup that fooled North Korean IT workers

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• Law
• Australia
• ASIC
• Blockchain

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