US Law Enforcement Directs Paxos to Freeze More Than 11,000 PAXG Tokenized Gold Coins – Bitcoin News

According to the blockchain infrastructure company Paxos, the firm has frozen 11,184.38 pax gold (PAXG) tokens held on the platform FTX.com. The regulated token issuer noted that it was directed to freeze the PAXG tokens after “direction from US federal law enforcement.”

Paxos Complies With US Law Enforcement Request to Freeze 11,184 PAXG

Paxos updated the public on Nov. 12, 2022, and detailed that the company has frozen 11,184.38 pax gold (PAXG) tokens held on the FTX platform. The update was written by Paxos global general counsel, Ben Gray. PAXG is a crypto token backed by one ounce of .999 fine gold at a 1:1 ratio and it’s the largest tokenized gold coin in terms of market cap.

“Earlier today, Paxos received direction from US federal law enforcement to freeze Paxos-issued assets associated with four ethereum addresses,” Gray’s blog post details. “In compliance with the request, Paxos froze 11,184.38 PAXG tokens valued at roughly $19 million. These tokens were previously on the FTX.com platform and had moved to unknown wallet addresses over the prior 24 hours.”

The PAXG tokens that were frozen by Paxos can be seen in the following four addresses:

The Paxos freeze follows Tether freezing 46 million USDT from FTX at the request of law enforcement officials as well. A Tether representative told Bitcoin.com News that the company “can confirm on the background that a freeze occurred.” Following the PAXG freeze update and sharing the addresses, Gray also said the company was working with the US authorities and relevant regulators.

“This is a rapidly evolving matter,” the Paxos executive detailed. “We intend to provide updates as appropriate as details come to light. As always, Paxos will continue to work closely with law enforcement and regulators. Thanks go to federal law enforcement for their extraordinary responsiveness to this matter.”

What do you think about Paxos freezing more than 11,000 PAXG from FTX’s four accounts? Let us know your thoughts about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols today emerging.