By Richard Hines
United States federal authorities have instructed Paxos, a cryptocurrency issuance firm, to freeze all of its funds that were previously transferred to the FTX exchange into four Ethereum wallets. On the Paxos Statement of report following this directive, the wallet addresses were displayed.
These authorities have also contacted the rival exchange Binance to inquire about its links to the FTX exchange.
Intense Investigation Ongoing
In light of the recent FTX collapse, federal authorities in the United States have instructed Paxos, a cryptocurrency issuing firm, to freeze tokens related to the FTX firm, as the inquiry into the FTX exchange dealings continues.
The crypto issuing corporation, Paxos, had previously moved some PAXG tokens to the FTX exchange before the crash, totaling $19 million in assets. However, during the heat of the crash these tokens were moved back to the firm.
This order came as a result of the FTX exchange’s inquiries into the market crash. The Sam Bankman-Fried multi-billion dollar exchange filed for bankruptcy after a $600 million hack occurred during the collapse.
Following the train of the investigations, the authorities contacted the competitor exchange, Binance to inquire about its connections with the FTX exchange.The CEO of Binance, CZ, had previously stated its plan to purchase the FTX exchange in order to resolve the liquidity issue; but backed out of this deal, causing the exchange to plummet dramatically.
Paxos Freezes Tokens Tied To FTX
In a statement, Paxos informed the public that it had received directives from US federal authorities to freeze any crypto assets linked to the FTX exchange using four addresses.
Paxos responded by freezing over 11,000 PAXG tokens that were formerly on the FTX platform but had been removed and transferred to another wallet after the meltdown.
The firm claimed that this is still an ongoing operation and that further information about the Paxos and U.S. federal authorities’ cause of action would be released.
The addresses where these tokens were frozen were posted on the Paxos statement of report following the US federal authority’s instruction. You may observe the blockchain activities involving the frozen assets by tapping on the addresses displayed there.
In addition, since the market crash, the U.S.authorities inquiry has delved into a wide range of crypto industries. The market has also not recovered from the crash, which resulted in massive losses and price volatility. Following the crisis, the overall market capitalization fell by more than $150 billion.