An Australian Securities Exchange (ASX) shareholder plans to seek Federal Court permission to sue certain former ASX officers and directors for alleged breach of duty linked to its failed blockchain-based clearing and settlement overhaul.
Wednesday, ASX said Rosherville Pty Ltd informed the Exchange that it proposed to apply for leave to commence a statutory derivative action under sections 236 and 237 of the Corporations Act of Australia. If approved, Rosherville will bring proceedings on behalf of the ASX.
The exchange said there were no complaints against ASX. It did not identify the former officials targeted, detail their alleged violations or disclose the remedies Rosherville intends to seek, although the court did not consider whether the proposed lawsuit could proceed.
The proposed case could test whether shareholders can hold former ASX leaders accountable for overseeing one of Australia’s costliest financial-tech failures.
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The 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 Assets. In December 2017, the 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, the ASX halted the project after an Accenture review found significant problems with its design and ability to meet exchange requirements. In May 2023, the ASX officially abandoned blockchain for replacement and will consider more conventional technologies.
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The Australian Securities and Investments Commission (ASIC) sued the ASX in August 2024, alleging that 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, the ASX admission For confusing behavior associated with blockchain replacement projects. July 3 in the federal court order With the company to pay $14.4 million in fines and $2.1 million in ASIC’s costs, Rocherville dropped the regulator’s case weeks before it exchanged its proposed action against the former executives.
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