Globix Cryptocurrency Exchange Goes Under Liquidation, $43 Million Funds Missing.

On April 25th, it was reported that the liquidators of the closed cryptocurrency exchange Globix have obtained a court order to freeze Globix’s cryptocurrency assets to force it to surrender customer information and search for missing funds of $43 million. The court has ordered Coin Security to stop transferring assets from several cryptowallets related to Globix, and also required exchanges including Crypto.com, Bitstamp, and Kraken to disclose the identities behind certain cryptowallets related to Globix. (Financial Times)

Globix liquidator has received a court order to freeze its encrypted assets in search of $43 million

Introduction

On April 25th, the 2021s, a news report broke that the liquidators of the closed cryptocurrency exchange, Globix had obtained a court order to freeze the exchange’s cryptocurrency assets. The move was intended to force the exchange to surrender customer information and search for missing funds of $43 million.

What Happened to Globix Cryptocurrency Exchange?

Globix was a cryptocurrency exchange that operated until October 2020 when it was placed under liquidation. Since then, the liquidators have been trying to recover the funds owed to customers, but it appears that there are missing funds worth $43 million.

Court Order to Freeze Globix’s Cryptocurrency Assets

To aid in the search for missing funds and the recovery of assets, the liquidators applied for a court order to freeze Globix’s cryptocurrency assets. The court order was granted on April 25th, 2021, and it required exchanges such as Crypto.com, Bitstamp, and Kraken to disclose the identities behind certain cryptowallets related to Globix.

Coin Security Ordered to Stop Transferring Assets From Certain Cryptowallets

Alongside the requirement to disclose identities, Coin Security was ordered to stop transferring assets from several cryptowallets related to Globix. This action was taken to prevent further depletion of assets during the search for missing funds and recovery of assets.

Attempt to Obtain Customer Information

The court order also required Globix to provide customer information to the liquidators. This move was intended to aid in the recovery of missing assets and to ensure that any funds paid to customers were done in a fair and transparent way.

Conclusion

The liquidation of Globix cryptocurrency exchange and the discovery of missing funds worth $43 million highlights the risks associated with cryptocurrency investments. Investors should always exercise caution and carry out due diligence before investing in any cryptocurrency. Additionally, exchanges should always be transparent and accountable to their customers.

FAQs:

#Q: What caused the failure of Globix cryptocurrency exchange?

A: The exact cause of the failure of Globix cryptocurrency exchange is yet to be determined.

#Q: Who will be affected by the failure of Globix cryptocurrency exchange?

A: The investors who had invested in Globix cryptocurrency will be affected the most.

#Q: Is it possible to recover the missing funds of $43 million?

A: It’s difficult to say if the missing funds will be recovered, but the liquidators are making every effort to recover the funds.

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