ASX Broadens Inquiry into $164 Million Project Collapse as Australian Regulators Establish Expert Panel: Report

The Australian Securities and Investments Commission has appointed a former deputy governor of the central bank to a three-member expert panel tasked with investigating the ASX’s unsuccessful blockchain venture, which had a valuation exceeding $160 million.

According to Reuters, one of the panel members is Guy Debelle, the former deputy governor of the central bank. The panel will focus on scrutinizing the flaws of the Australian Securities Exchange’s blockchain project, which incurred an estimated cost of around $163.1 million.

Alongside Debelle, ASIC has named Rob Whitfield, a non-executive director at the Commonwealth Bank, as the panel’s chairperson. Christine Holman, who serves as a non-executive director for Australian companies AGL and Collins Foods, will also be part of the panel.

ASIC has indicated that the inquiry panel’s responsibilities include making recommendations and pinpointing any governance, capability, and risk management issues within the ASX that may have played a role in the project’s failure.

Moreover, the panel is anticipated to submit its findings and recommendations to ASIC by March 31, 2026, detailing key regulatory actions for the ongoing investigation.

In a response sent to Reuters, ASX voiced its support for the regulator’s announcement and pledged to engage “constructively” with the panel during the inquiry.

What was the unsuccessful ASX blockchain project?

The ASX launched the project in 2015 to upgrade its existing trading system, known as the Clearing House Electronic Subregister System (CHESS). Under the leadership of then-CEO Elmer Funke Kupper, ASX partnered with the New York-based startup Digital Asset Holdings to initiate this blockchain project.

As time progressed, concerns arose as project participants argued that digital assets lacked sufficient market backing and that ASX had partnered with the New York startup without adequately verifying the product’s scalability.

Ultimately, in November 2024, ASX decided to terminate the project entirely, citing “dysfunctional management, concerns over the product’s complexity and scalability, and challenges in securing expert support” as the main reasons for its cancellation. The financial repercussions were estimated to be between 245 million AUD and 255 million AUD (approximately $164 million to $171 million).

Reuters reported that the failure of the project led to a significant erosion of public trust in the stock exchange, with numerous brokers and market participants expressing considerable criticism.