ASX shareholder plans to sue over failed blockchain CHESS
An ASX shareholder plans to sue former directors and officers after the exchange admitted misleading the market over its failed blockchain CHESS overhaul. Rosherville Pty Ltd wants Federal Court leave for a derivative action under Australia’s Corporations Act, renewing governance pressure after a A$14.4 million penalty.
Key Takeaways
- Rosherville Pty Ltd notified ASX it will seek leave for a statutory derivative action against certain former officers and directors.
- ASX said there are no allegations against the exchange itself, and the court has not yet decided if the case can proceed.
- ASX abandoned its Digital Asset blockchain CHESS replacement in 2023 after years of delays and an Accenture review.
- In June 2026 ASX admitted misleading conduct; the Federal Court ordered a A$14.4 million penalty plus A$2.1 million in ASIC costs.
Why is an ASX shareholder planning to sue former directors?
On Wednesday, ASX said Rosherville Pty Ltd 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 sue on ASX’s behalf over alleged breaches of duty tied to the failed blockchain-based clearing and settlement overhaul.
The exchange did not name the former officials, detail the alleged breaches, or say what remedies Rosherville seeks. The proposed lawsuit could test whether shareholders can hold former ASX leaders accountable for one of Australia’s costliest financial-technology failures. Follow more Fintech & Crypto Alerts coverage on exchange and market infrastructure risk.
What went wrong with ASX’s blockchain CHESS project?
ASX began exploring a CHESS replacement in 2016 and selected a distributed-ledger system developed with New York-based Digital Asset. By December 2017, ASX was expected to become the first securities exchange to use blockchain for its core services.
The launch was repeatedly postponed. In November 2022, ASX paused the project after an Accenture review found significant design and requirements problems. In May 2023, ASX formally abandoned blockchain for the replacement and said it would consider more conventional technology.
What have ASIC and the courts already decided?
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. 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. On July 3, the Federal Court ordered ASX to pay a A$14.4 million penalty and A$2.1 million toward ASIC’s costs, closing the regulator’s case weeks before Rosherville notified ASX of its proposed action, according to Cointelegraph.
ASX’s failed blockchain-based CHESS overhaul now faces renewed governance scrutiny as a shareholder seeks court permission to pursue former directors—keeping pressure on how listed exchanges disclose major tech programs.