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Paxos Freezes $19 Million in PAXG Tokens Linked to FTX

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Cryptocurrency issuer Paxos has frozen more than $19 million in crypto assets associated with bankrupt exchange FTX at the direction of U.S. law enforcement, the company announced Saturday.

The fund, 11,184 tokens of PAXG, Paxos’ native stablecoin backed by physical gold bars, was worth just over $19 million at the time of the weekend’s action.

After the Bahamas government freeze all assets Bahamas-headquartered FTX-related company embarrassed on Thursday declared bankruptcy on FridayThen on Friday night, hundreds of millions of dollars It mysteriously leaked from my FTX wallet. It remains unclear whether the transfer was the result of a hack or whether he was initiated by an FTX employee in defiance of bankruptcy proceedings, but FTX general counsel Ryne Miller called the transfer “unauthorized.” increase.

On Saturday, federal officials ordered Paxos to freeze PAXG associated with four wallet addresses involved in Friday night’s events. Paxos says it was immediately compliant.

As always, Paxos will continue to work closely with law enforcement and regulators,” said Ben Gray, the company’s global general counsel, in a statement. “We thank federal law enforcement for their extraordinary response to this matter.”

A few days before Wednesday, Paxos tweeted that “FTX and Alameda have shattered confidence and faith in cryptocurrency and blockchain” when FTX’s potential shock collapse was revealed.

“These events are the result of irresponsible activity and lack of management practices reminiscent of past financial crises,” the firm wrote. “The road to adoption is through proper oversight and regulation. There are no shortcuts, the history is clear.”

Days after the implosion of FTX, The legislator made a strict demand Years of sporadic enforcement action by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have failed to establish an industry-wide standard.

The SEC, CFTC, and Department of Justice have all reportedly FTX Customer Money Management Survey and possible fraud.California regulator I am doing my own research Until last week, the now-defunct company marketed itself as the most reliable, reliable and regulatory-friendly brand in the cryptocurrency industry.

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