The Australian Securities and Investments Commission (ASIC) said in a lawsuit filed on Wednesday that the board and management of the ASX (Australian Stock Exchange) had "collectively failed" in managing the upgrade of its blockchain-based platform.

The upgrade project was initially promoted as a leading blockchain initiative, but was abandoned in November 2022 after seven years of development. The failed upgrade has triggered criticism of the ASX from the banking industry, government and the Reserve Bank of Australia.

ASIC cited a statement from the ASX in February 2022 in the lawsuit that the blockchain upgrade was progressing smoothly and was scheduled to go live in April 2023. However, just six weeks later, the ASX said the upgrade might be delayed and appointed consultants Accenture to conduct a review.

Accenture's review found that the project was only 63% completed. ASIC alleges that the February update was "misleading and deceptive" because the ASX did not have a reasonable basis to claim that the upgrade was progressing smoothly.