Incoming reports indicate that liquidators from Globix trading networks just got a court order freezing assets, allowing them to acquire info from crypto exchanges.
Globix, a cryptocurrency trading network, just recently went into liquidation. The court appointed Joanne Wild, Adrian Hyde, and Brian Simpson to deal with the issues.
However, it was discovered that around $43 million is missing.
Reports indicate that the liquidators have obtained an injunction ordering crypto exchange Binance to stop the movement of any assets associated with Globix wallets.
Globix hit with legal action
The court injunction issued on April 13 also demands that crypto exchanges Kraken, Crypto.com, and Bitstamp reveal the identity of persons associated with some crypto wallets connected to Globix.
Based on reports, the injunction is part of an investigation searching for the missing funds. Further reports allege that most of the $43 million was held in stablecoin Tether.
Globix trading network is owned solely by a Giblatarian citizen Damian Carreras. Most of Globix’s users were also Giblatar citizens. Rumors allege that the trading network was connected to investors with strong political ties, with one even being a member of parliament.
Globix’s financial problems began last June when the crypto markets began a downward spiral. However, the network’s director only filed for liquidation last month. Concerning the missing funds, Carreras allegedly noted that Globix lost funds through theft.
Other rumors dictate that Globix was not a registered entity in Gibraltar. Reports allege that Carreras has not been cooperating with the liquidators. However, Carreras notes that he is cooperative.
“It’s an impossible standard to expect a regulator to be omniscient and know what every single Gibraltarian is investing in, especially if a company isn’t regulated or established within the jurisdiction.”
Damian Carreras, owner Globix network.
Gibraltar’s crypto ambition
The recent court injunction brings a severe risk to Gibraltar’s crypto ambition.
Reports alleged that Gibraltar intends to be the world-leading jurisdiction with regulations designed to monitor virtual asset businesses. This country was the first to write rules for the crypto market in 2018.
Last year, Gibraltar was listed by the Financial Action Task Force as having a deficiency in anti-money laundering and terrorist financing protocol.
