A recent court ruling has put a stop to all cryptocurrency-related activities on major platforms, such as Binance, Crypto.com, Bitstamp, and Kraken.
The decision was made in response to a request from the liquidator of the defunct cryptocurrency platform Globix, who sought to freeze all digital assets and block accounts associated with the exchange.
The aim is to prevent the former administrators of Globix and its clients from withdrawing funds from the bankruptcy estate.
As part of the ruling, Binance, Crypto.com, Bitstamp, and Kraken are required to provide information on user balances and crypto wallets linked to the Globix platform.
The liquidator hopes to identify the sources of over $43 million in hidden crypto assets.
Globix’s operator, Miracle World Ventures, filed for liquidation in March of last year, but client funds continued to move between different cryptocurrency exchanges until at least September 2022.
For example, more than $18 million was transferred to cryptocurrency wallets on Binance.
The liquidation commission suspects the sole shareholder and director of Miracle World, Damian Carreras, of fraud and asset theft from Globix clients.
Meanwhile, in a separate case, Egyptian authorities recently detained 29 individuals involved in the distribution of the Hoggpool mobile app for investing in cryptocurrencies, with about 800,000 investors believed to have been impacted by the scam.