- A shareholder is seeking court permission to sue former ASX officers and directors over alleged breaches tied to the failed blockchain project.
- The proposed lawsuit follows the exchange’s $14.4 million penalty for misleading conduct regarding the CHESS replacement project.
- The case could determine whether shareholders can hold executives accountable for one of Australia’s costliest fintech failures.
An Australian Securities Exchange (ASX) shareholder plans to seek Federal Court permission to sue certain former officers and directors over alleged breaches of duty connected to its failed blockchain-based clearing and settlement overhaul. Rosherville Pty Ltd notified the exchange of its proposal to commence a statutory derivative action under sections 236 and 237 of Australia’s Corporations Act, according to an ASX statement.
The exchange confirmed there were no allegations against ASX itself but did not identify the former officials or disclose the remedies sought. The court has not yet considered whether the proposed case can proceed.
ASX began exploring a replacement for its Clearing House Electronic Subregister System in 2016, selecting a distributed-ledger system developed with Digital Asset. By December 2017, ASX was expected to become the first securities exchange to use blockchain for core services, but the launch was repeatedly postponed.
In November 2022, ASX paused the project after an Accenture review found significant design problems. The exchange formally abandoned blockchain for the replacement in May 2023.
The Australian Securities and Investments Commission (ASIC) sued ASX in August 2024, alleging it lacked a reasonable basis for claiming the project was “progressing well.” In June 2026, ASX admitted to misleading conduct, and on July 3, the Federal Court ordered the company to pay a $14.4 million penalty and $2.1 million toward ASIC’s costs. The proposed lawsuit could test whether shareholders can hold former leaders accountable for overseeing one of Australia’s costliest financial-technology failures.
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