Well, the company is currently being sued by ASIC for illegal...

Well, the company is currently being sued by ASIC for illegal disclosure breaches, and the company (and Karantzis specifically) are being sued for illegally breaching their fiduciary duties in order to enrich themselves specifically to the detriment of shareholders.

So no, if the ASIC case is proven, then they haven't done everything legally.

"Auditors, ASIC, ASX have all signed off at the appropriate times" is also quite misleading. Auditors signed off on an audit, not an assurance engagement on this specific topic. ASIC did a review, and later announced a formal investigation, so I wouldn't say that they signed off on anything. And ASX don't sign off on anything, but given that they suspended ISX, it's fair to say that they'd also disagree with your assertion.