The liquidators of Globix, a crashed cryptocurrency exchange, have received a court order that freezes digital assets and forces crypto exchanges to hand over customer information while searching for $43 million in lost funds.
Searching for Lost Millions of Cryptocurrency Exchange Globix
A court order in Gibraltar earlier this month has requested Binance, the world's largest crypto exchange, to cease attempts to move assets and customer information from several Globix-linked crypto wallets.
According to the order seen by the Financial Times, the court also required rival exchanges such as Crypto.com, Bitstamp and Kraken to reveal the identities behind some crypto wallets associated with the Globix platform.
According to one person who witnessed the research, bankruptcy lawyers are seeking about $43 million.
Globix was trying to carve out a niche in crypto investment by allowing traders to choose automated trading strategies to choose attractively-valued tokens, but it was hit hard by the unprecedented crypto decline last summer.
After the failure of FTX in the Bahamas and several major crypto firms in Singapore, financial centers around the world are grappling with the discredit of controversial crypto crashes.
The Gibraltar Financial Services Commission told the FT that it is taking a "proactive approach to environmental issues" and is working with relevant authorities to "help protect consumers and Gibraltar's reputation."
Globix closed its doors to investors in June last year due to the crisis of confidence that gripped the crypto market.
After a long struggle to pay investors, Globix went into voluntary liquidation last month.
*Not investment advice.