ASIC sues ASX over misleading blockchain project claims [Video]

The Australian Securities and Investments Commission (ASIC) has sued the Australian Securities Exchange (ASX), the country’s leading stock exchange, over allegations it made “misleading and deceptive” statements about a now-abandoned project to replace its outdated systems with blockchain technology.

“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,” the regulator said in a media release.

Specifically, Australia’s top financial sector watchdog alleged that in a February 10, 2022, announcement, ASX falsely stated that the blockchain-based replacement for CHESS—the computer system that manages the settlement of share transactions and record shareholdings—was “on track for go-live” in April 2023 and was “progressing well.”

The regulator claimedthe project was “not tracking to plan” at …