Paxos ordered by U.S. officials to freeze $19M in crypto tied to FTX

11/14 15:33

According to CoinDesk, U.S. federal law enforcement has ordered crypto issuer Paxos to freeze $19 million worth of crypto tied to the bankrupt FTX exchange, the company announced on Saturday. The order comes after the U.S. Justice Department launched an investigation into the rapid collapse of Sam Bankman-Fried's crypto empire last week. The run on the multi-billion dollar exchange occurred over just a few days, culminating in a bankruptcy filing in the U.S. on Friday. By Thursday last week, U.S. regulators and the Justice Department had already contacted rival crypto exchange Binance for information about its interactions with FTX. Binance had previously announced it would step in and possibly acquire the ailing exchange, but less than 24 hours later backtracked on the tentative deal after examining FTX's finances.

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