The discovery of a lost of $43 million in crypto assets belonging to a Gibraltar-based cryptocurrency platform, Globix, has resulted in an injunction ordered by the court to stop the transfer of funds from different related wallets. This has caused an uproar in financial markets across the world, giving rise to fears of reputational damage and questioning of the efficacy of local governance in regulating the burgeoning digital asset market.

Globix, headed by Damian Carreras, a Gibraltarian citizen, had investors mostly from the United Kingdom and Gibraltar. Miracle World Ventures Ltd, a BVI corporation, secured liquidation in March of this year, leading to the shut down of the platform. This was preceded by an attempted launch of a cryptocurrency investment platform that enabled users to select attractively priced coins through automated trading techniques.

Gibraltar had adopted comprehensive crypto regulations in early 2018, in order to become a top digital asset jurisdiction that provides proper control. Nevertheless, despite not being regulated by local authorities, the liquidity events associated with Globix have raised apprehensions about the ability of the legal and political setups to identify consumer risks. In addition to Binance, the court order also mentioned other exchanges like Crypto.com, Bitstamp, and Kraken to reveal the identities of the associated customers.

The court injunction has prohibited any other individual from enabling or aiding such a breach, thereby signaling a stern stance against illegalities in the industry. Hence, it has become critical for digital asset firms to put in place stringent governance measures to ensure alignment to applicable regulations, as well as consumer protection norms. Finally, investors must also exercise precaution while investing in cryptocurrency, by thoroughly researching on any project, its promoters and its partners, before committing funds.



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