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SirWin
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SirWin

Paxos burns PAXG tokens in four FTX drainer wallets 

News
Paxos burns PAXG tokens in four FTX drainer wallets 

Reports surfaced yesterday that Paxos had burnt PAXG in four different FTX drainer wallets.

Earlier, observers thought PAXG, issued by Paxos, had been moved by the FTX hacker.

However, as it turns out, Paxos had moved 11,184.18 PAXG worth approximately $20 million out of circulation. Afterwards, the token issuer minted new PAXG from their Treasury before moving them to a new wallet.

In November, Paxos froze the four accounts on directions from U.S. authorities. Tether Holdings, the issuer of USDT, was also ordered to freeze assets.

It is not fully clear yet whether Paxos destroyed tokens following a directive from law enforcement in the U.S. or any other country.  

Identity of the FTX hacker

The crypto community continues to speculate about the identity of the person or people behind the FTX hack, which happened just hours after the company filed for bankruptcy.

Users were warned of the attack and told to stay away from the FTX app after about $600 million was drained from a series of FTX-linked wallets.

Rumors have pinned the unexpected hack on former FTX employees.