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Gibraltar authorities force crypto exchanges to disclose users’ identities

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ByMarcel Bich

Jun 2, 2023
Gibraltar authorities force crypto exchanges to disclose users' identities
Marcel Bich
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The court’s decision is related to the collapse of a local cryptocurrency exchange.

A court in the British overseas territory of Gibraltar ordered three cryptocurrency exchanges to disclose the identities of counterparties of cryptocurrency company Globix. Specifically, the institution’s sanctions apply to crypto exchanges Bitstamp, Kraken, and Crypto.com, the Financial Times reported, citing the court order.

The court’s ruling stems from a request by the liquidators of the Globix site, which collapsed in June 2022. As the Olive Press found out, the site initially appeared to have collapsed amid a general wave of bankruptcies and an outbreak of cryptocurrency volatility, but it turned out to be much more complicated than that.

The exchange’s main problem was the disappearance of $43 million in tether stablecoin (USDT). Now the liquidators of the site are trying to trace where the funds disappeared, and therefore demand to disclose the data of counterparties.

Kidnappings, bankruptcies, and cryptocurrencies

According to the Financial Times publication, the cryptocurrency site Globix was operating in Gibraltar without a license. Its only shareholder was Damian Carreras. The collapse of Globix was triggered by a strange story related to Russian Pavel Sidorov, who was one of the key partners of the site.

As Olive Press states, Sidorov had allegedly been kidnaped. During this incident, he sent about $43 million in USDT stablecoin to a cryptocurrency wallet in Ukraine to an unknown recipient. After that, Globix collapsed and Damian Carreras fled from the authorities investigating the incident to Barcelona.

Financial Times noted, that among the clients of Globix were high-ranking and even government officials, including a member of the Parliament of Gibraltar. After the collapse, authorities of the territory forced the Binance exchange to stop transferring assets from several cryptocurrency wallets linked to Globix.

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Marcel Bich

Marcel ‘s passion for the world of cryptocurrencies and his comprehensive knowledge of blockchain technology make him an invaluable asset to our team. He stays updated on the latest trends, regulations, and emerging technologies in the crypto space, ensuring that our audience receives accurate and up-to-date information.