Globix liquidators freeze assets in search of $43m

The trader’s collapse has shone a spotlight on Gibraltar’s ambitions to be a leader in crypto.

The assets of collapsed cryptocurrency trader Globix have been frozen by liquidators.

The liquidators have secured a court order that will also force crypto exchanges to hand over customer information as they try to locate $43m of missing funds.

Earlier this month, a court injunction in Gibraltar ordered crypto exchange Binance to halt any attempts to move assets from several Globix-linked crypto wallets.

The exchange moved $18m from May 2021 to September 2022 and claimed it was legally compliant.

The court has also ordered rival exchanges Crypto.com, Bitstamp and Kraken to reveal the identities behind certain crypto wallets associated with the Globix platform as lawyers attempt to locate around $43m of missing funds.

The court orders are threatening to undermine Gibraltar’s intentions to cement its place as a crypto hub.

The British controlled territory passed regulations for crypto in early 2018, making it one of the first jurisdictions in the world to write rules for the digital asset market.

Globix was not licensed by regulators in Gibraltar, but its collapse has called into question whether the territory's rule makers can adequately identify risks to consumers.

The Gibraltar Financial Services Commission told the Financial Times it took a “proactive approach to perimeter issues” and worked with relevant authorities to “help safeguard consumers and the reputation of Gibraltar”.

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Written by David Kent

David has more than a decade of sports betting and sports writing experience working with some of the biggest names in the industry. He focuses on articles covering these subjects including how crypto is transforming sportsbooks.

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