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

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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 U.S. federal law enforcement.”

Paxos Complies With U.S. 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 U.S. 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 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 U.S. 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.”

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