The Australian Securities Exchange is facing a legal challenge from one of its own shareholders over the abandoned blockchain-based CHESS project. Rosherville Pty Ltd has notified ASX that it will seek permission from the Federal Court to file a statutory derivative action against certain former ASX officers and directors. If the court grants leave, Rosherville would pursue the case on behalf of ASX. ASX says the action does not allege wrongdoing by ASX itself, but it has not identified which former officials are involved, what obligations they allegedly breached, or what remedies would be sought. The Federal Court has not yet decided whether the case can proceed. The case comes after ASX spent years working on a blockchain replacement for its CHESS clearing and settlement system, suspending the project in November 2022 and abandoning the blockchain approach in May 2023. On July 3, 2026, the Federal Court ordered ASX to pay a civil penalty of $14.4 million and $2.1 million to cover the Australian Securities and Investments Commission's legal costs. Cointelegraph first reported the case.
ASX shareholder Rosherville Pty Ltd has notified the Australian Securities Exchange that it intends to ask the Federal Court for permission to start a statutory derivative action against certain former ASX officers and directors.
If the application is approved, Rosherville would bring the legal action on behalf of ASX. The exchange says the proceedings do not allege any wrongdoing by ASX itself. ASX has not disclosed the identities of the former officials, the specific obligations they allegedly breached, or the remedies Rosherville plans to seek. The Federal Court has not yet considered whether the case can move forward.
Blockchain project fallout
The proposed action follows ASX's abandoned effort to replace its CHESS clearing and settlement system with blockchain technology. ASX started working on the project in 2016, paused it in November 2022, and dropped the blockchain approach in May 2023.
On July 3, 2026, the Federal Court ordered ASX to pay a civil penalty of $14.4 million and reimburse $2.1 million in legal costs to the Australian Securities and Investments Commission (ASIC). The case was reported by Cointelegraph.
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