Cryptocurrency wallets potentially linked to the Globix exchange, which collapsed in March, have been frozen on a number of major trading platforms by order of a Gibraltar court. The Financial Times reports this.
This was done so that Globix’s liquidators could locate the $43 million missing from the accounts. The decision affects Binance, Crypto.com, Bitstamp and Kraken.
The liquidators secured a court order to freeze the wallets as of April 13, but the order had not been published anywhere. The court also demanded that the exchanges disclose information about the wallet owners who may be linked to Globix.
The director and sole shareholder of Globix was Gibraltar-born Damian Carreras. The exchange did not hold a government licence. Nevertheless, among its investors were local high-ranking public officials, including a member of parliament.
In the wake of summer 2022 when major cryptocurrencies dipped, the exchange faced problems and barred clients from accessing funds. However, according to court documents, the assets moved at least as far as September. In particular, $18 million ended up on Binance.
Authorities suspect Carreras of fraud and theft of client funds.
In late March 2023, the cryptocurrency exchange OKX announced the transfer of frozen assets related to the bankrupt FTX and Alameda Research linked to them, amounting to about $157 million.