Paxos freezes FTX-linked accounts with $19 million

After FTX declared Chapter 11 bankruptcy, a series of unauthorized transactions happened on the company accounts.

Paxos has announced it froze four FTX-linked accounts holding over $19 million denominated in Paxos (PAXG) tokens after the accounts were linked to unauthorized transactions from FTX. Paxos freezer the accounts in response to an order from U.S law enforcement.

The order comes after the law enforcement agency began investigating the collapse of the FTX exchange. “This is a rapidly evolving matter,” stated Ben Gray, General Counsel for Paxos. Gray noted the firm would work closely with law enforcement and regulators as always.

Recall that Paxos has previously emphasized the need for proper oversight and regulation to move the industry forward and avoid a crisis. Also, Paxos pointed out that FTX’s dire situation is a result of irresponsible activity and deficient management practices.

“FTX and Alameda have broken confidence and trust in crypto and blockchain,” it tweeted.  Additionally, the firm praised law enforcement for their proactiveness on the case.

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