ASX Shareholder Targets Former Directors Over Failed Blockchain Project

An Australian Securities Exchange (ASX) shareholder is taking aim at former directors and officers in connection with the failed blockchain-based clearing and settlement overhaul. Rosherville Pty Ltd, an ASX shareholder, plans to seek Federal Court permission to sue certain former officials for alleged breaches of duty.

The proposed lawsuit could test whether shareholders can hold former ASX leaders accountable for overseeing one of Australia's costliest financial-technology failures. The exchange began exploring a replacement for its Clearing House Electronic Subregister System (CHESS) in 2016 and selected a distributed-ledger system developed with New York-based Digital Asset.

The intended launch was repeatedly postponed, and 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 formally abandoned blockchain for the replacement and would consider more conventional technology.