Paxos Freezes FTX-Linked Accounts 

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Key Takeaways:

  • US Federal Law enforcement gave Paxos instructions to freeze the company’s assets connected to four Ethereum addresses.
  • The tokens had been transferred from the platform to unidentified wallet addresses over the preceding day.

Following a government order, Paxos announced over the weekend that it had frozen PAXG tokens on the FTX cryptocurrency exchange. The directive was issued after the police department started looking into the FTX exchange’s eventual downfall. Ben Gray, General Counsel for Paxos, said: “This is a rapidly evolving matter.” Gray stated that the company would continue to cooperate closely with authorities and regulatory bodies.

11,184.38 pax gold (PAXG) tokens held on the FTX platform have been frozen by the company. Ben Gray, general counsel for Paxos worldwide, authored the update. The largest tokenized gold coin in terms of market capitalization is called PAXG, a cryptocurrency that is backed by one ounce of.999 fine gold at a 1:1 ratio.

According to reports, on November 12th, Paxos received a directive from US government agencies to freeze FTX’s assets.

Following the instructions, Paxos issued a press release that included the following:

US Federal Law enforcement gave Paxos the go-ahead to freeze Paxos-issued assets linked to four Ethereum addresses. Paxos froze 11,184.38 PAXG tokens worth about $19 million in accordance with the request.”

 These tokens had been transferred from the platform to unidentified wallet addresses over the previous 24 hours.

Paxos identified four key addresses in the press release where users can view their blockchain activity: 0x59ABf383, 0xc40aBF7E, 0x5Ea8132c, and 0x9c43CBfC.

Paxos made the change to follow instructions from the authorities. Paxos actually reaffirmed its dedication to attempting to solve any issues by adhering to the regulatory bodies in its press release.

The troubled company, FTX, filed for bankruptcy after the Bahamian government on Thursday placed a freeze on all of its assets. Then, late on Friday night, FTX employees’ wallets strangely lost hundreds of millions of dollars.

In order to advance the sector and avert a crisis, Paxos has initially emphasized the importance of proper oversight and regulation. Paxos also emphasized that FTX’s precarious situation is due to careless behavior and subpar management techniques.

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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