Paxos freezes assets tied to FTX after law enforcement directive

U.S. law enforcement officials directed Paxos on Saturday to freeze assets previously held on FTX.

Paxos, a regulated blockchain infrastructure platform, froze 11,184.38 PAXG tokens valued at roughly $19 million. The tokens had moved from FTX.com to unknown wallet addresses over the prior 24 hours.  

“Earlier today, Paxos received direction from U.S. Federal Law enforcement to freeze Paxos-issued assets associated with four ethereum addresses,” Paxos said in a blog post. 

Paxos Gold is a gold-backed digital asset issued by Paxos. The asset has a market capitalization of about $525 million, according to CoinGecko data. 

The blockchain wallet activity is viewable at the following addresses:

• 0x59ABf3837Fa962d6853b4Cc0a19513AA031fd32b 

• 0xc40aBF7E6499694ea6F965Df96e39E51305E019a 

• 0x5Ea8132c16d6FA409c65D48c5e093a0dfFa0d253 

• 0x9c43CBfC046889159d4D53E0069737a7A142a369 

Paxos said it will continue to work closely with law enforcement and regulators. FTX filed for bankruptcy protection on Friday.

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