ASX Shareholder Plans Lawsuit Over Failed Blockchain Project

ASX did not identify the targeted former officials, detail their alleged breaches or disclose the remedies sought, and the court has yet to consider the case.

ASX Shareholder Plans Lawsuit Over Failed Blockchain Project

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Written by

Ezra Reguerra

staff writer

Reviewed by

Yohan Yun

staff editor

Written by

Ezra Reguerra

staff writer

Reviewed by

Yohan Yun

staff editor

ASX shareholder plans to sue former directors over failed blockchain project

Latest News

Published

Aug 13, 2026

ASX’s failed blockchain-based CHESS overhaul faces renewed governance scrutiny after the exchange admitted misleading the market.

An Australian Securities Exchange (ASX) shareholder plans to seek Federal Court permission to sue certain former ASX officers and directors over alleged breaches of duty connected to its failed blockchain-based clearing and settlement overhaul.

On Wednesday, ASX

said

Rosherville Pty Ltd had notified the exchange that it proposes to apply for leave to commence a statutory derivative action under sections 236 and 237 of Australia’s Corporations Act. If approved, Rosherville would bring the proceedings on ASX’s behalf.

The exchange said there were no allegations against ASX itself. It did not identify the former officials targeted, describe their alleged breaches in detail or disclose the remedies Rosherville intends to seek, while the court has not considered whether the proposed case can proceed.

The proposed lawsuit could test whether shareholders can hold former ASX leaders accountable for overseeing one of Australia’s costliest financial-technology failures.

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.

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Law

Australia

ASIC

Blockchain

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