Paxos freezes assets tied to FTX after law enforcement directive

Quick Take

  • Paxos said it is working with law enforcement and has frozen assets in the wake of FTX’s collapse.

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 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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