ASX shareholder plans to sue former directors over failed blockchain project
ASX’s failed blockchain-based CHESS overhaul faces renewed governance scrutiny after the exchange admitted misleading the market.
An Australian shareholder intends to pursue a lawsuit against former ASX directors over alleged breaches of duty related to the exchange's failed blockchain-based CHESS overhaul. The shareholder's company, Rosherville Pty Ltd, has notified ASX of its intention to apply for permission to commence a statutory derivative action under specific sections of the Corporations Act.
If granted, this action would be brought on behalf of ASX. The exchange has not named the targeted former officials, nor detailed their alleged breaches or the remedies sought. The court has yet to determine if the case can proceed. The lawsuit could potentially set a precedent for determining whether shareholders can hold former ASX leaders accountable for their oversight of a costly financial-technology failure.
ASX's blockchain-based CHESS project began in 2016 and was intended to be Australia's first securities exchange to utilize blockchain for core services. However, the project faced repeated delays and was ultimately abandoned in May 2023 in favor of more conventional technology. In June 2026, ASX admitted to misleading the market regarding the project's progress, leading to a $14.4 million penalty and additional costs being imposed.
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