By George Ward
Several crypto exchanges in Gibraltar have been ordered by a court to cooperate with the liquidators of the failed crypto trader, Globix. According to reports, the liquidators are trying to trace the whereabouts of about $43 million that went missing under the custody of Globix.
Court Orders Account Freeze
Accordingly, Binance, Crypto.com, Bitstamp, and Kraken are required to help identify the owners of the suspected crypto wallets or freeze further transactions on the said addresses. A source familiar with the latest development noted that the court order was issued on April 13 after the Gibraltar authorities started a full-blown investigation into the alleged fraud leading to the shutdown of Goblin.
The country is one of the contending jurisdictions seeking to become the next top crypto hub. It houses a spot trading platform, a subsidiary of Huobi Exchange, and ZUBR, another trading division of the now-bankrupt crypto exchange, FTX.
Goblix stopped receiving investors’ deposits in June 2022 amid the crypto winter and filed for liquidation in March 2023. According to Damian Careras, founder of Goblix and a native of Gibraltar, his firm has been trying to recover its funds.
Still, it has been too vulnerable to hacking and theft.
The Rise Of BTC Adoption In Gibraltar
The tiny British Overseas Territory has been one of the brightest stories to make the news regarding using BTC for transaction purposes. Amid the broader crypto market correction last year, Gibraltar has seen a rise in the use of BTC.
This rise comes after the country’s popular coffee chain, Costa Coffee, started to accept Bitcoin payments through the Lightning network. Hence, other franchises to have taken advantage of the Lightning Network (LN) to receive payments include Hotel Chocolat and the Card Factory.
Implementing the LN for microtransactions is ideal for the numerous micropayments users can make for services like postcards, ice cream, and even a cup of Cappuccinos. Moreover, LN payments are instant and cost less than Mastercard or VISA payments.
According to Neil Walker, the managing director of Sandpiper GI, a Lightning-based card is no different from using a contactless credit card due to its speed and transaction efficiency. However, Bitcoin critics have criticized the move saying that buying coffee with BTC is impossible.
Walker responded that even the BTC naysayers were impressed by the transaction speed and that it is a no-brainer for users. During an interview in 2022, Walker noted that individuals who believe in Bitcoin could use the LN payment solution to reduce transaction costs.
According to him, Bitcoin Lightning Network is a neutral payment platform open to all, where users can easily navigate the various currencies. LN payment comes with several national currencies that users can choose from to complete their transactions.
Gibraltar welcomes at least 8 million visitors annually as a top tourist destination. With the country close to Spain and the different fiat national currencies the two countries use, currency conversion, offshore remittance, and tourism are some of the strong drivers for adopting a borderless token like BTC.
Meanwhile, users can pay for services in Gibraltar by scanning a QR code or using the NFC-enabled Bitcoin Lightning payment card.