ASX Shareholder Seeks Legal Action Against Former Directors Over Failed Blockchain Project
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Written by
Simonas Brazionis - Updated 2026-08-16 12:12:49
An Australian Securities Exchange (ASX) shareholder intends to pursue legal action against former ASX officers and directors. The action alleges breaches of duty related to the unsuccessful blockchain-based clearing and settlement system overhaul. Rosherville Pty Ltd has informed ASX of its plan to seek Federal Court permission to initiate a statutory derivative action under sections 236 and 237 of Australia’s Corporations Act. If approved, Rosherville would represent ASX in the proceedings.
ASX has stated that no allegations have been made against the exchange itself. The specific former officials targeted, the detailed nature of their alleged breaches, and the remedies Rosherville seeks have not been disclosed. The court has not yet evaluated the viability of the proposed case. This potential lawsuit could determine whether former ASX leadership can be held accountable for their oversight of a significant financial technology failure in Australia.
Background of the CHESS Replacement Project
The CHESS replacement project began in 2016, with ASX opting for a distributed-ledger system developed in collaboration with Digital Asset. In December 2017, ASX was anticipated to become the first securities exchange to utilize blockchain for its primary services. The launch experienced multiple delays.
In November 2022, ASX halted the project following an Accenture review that identified substantial design issues and its capacity to meet exchange requirements. By May 2023, ASX had officially abandoned blockchain for the replacement, indicating a consideration of more conventional technology.
ASIC’s Legal Action Against ASX
The Australian Securities and Investments Commission (ASIC) initiated legal proceedings against ASX in August 2024. ASIC alleged that ASX lacked a reasonable basis for its February 2022 market statement, which indicated the project was “progressing well” and on schedule for an April 2023 launch. ASIC characterized the situation as a collective failure by ASX’s board and senior executives.
In June 2026, ASX acknowledged misleading conduct concerning the blockchain replacement project. On July 3, the Federal Court mandated ASX to pay a $14.4 million penalty and $2.1 million towards ASIC’s costs. This concluded the regulator’s case weeks before Rosherville’s notification of its proposed action against former officials.
