FTX customer data will not be disclosed
2023.01.12 03:44
FTX customer data will not be disclosed
By Kristina Sobol
Budrigannews.com – Following the most recent decision in the FTX bankruptcy proceedings, the identities of up to nine million customers are expected to remain private for a minimum of three more months.
According to reports, Judge John Dorsey made the decision on January 11 in the Delaware-based bankruptcy court in response to FTX’s 168-page filing on January 8 in which it asked the court to withhold confidential customer information.
Despite increased pressure from a number of media outlets, Judge Dorsey stated that he remains “reluctant at this point” to disclose the confidential information because it may “put creditors at risk.”
“We’re talking about people here who are not present – people who may be at risk if their name and information are disclosed,”
Days earlier, FTX lawyers argued that the court should use its “broad discretion” under the U.S. Bankruptcy Code to safeguard those impacted by FTX’s collapse because “disclosure of the information would create an undue risk of identity theft or unlawful injury to the individual or the individual’s property.”
A group of non-U.S. FTX customers also argued in a December 28 joinder filing that public disclosure would cause “irreparable harm” and urged the Delaware bankruptcy court to keep customer information private.
However, Judge Dorsey’s decision is contrary to the majority of bankruptcy proceedings in which creditor information is disclosed, as was the case in Celsius’s bankruptcy in October.
The Delaware-based bankruptcy court hasn’t been as kind to FTX equity holders. On January 9, a document said how many FTX shares the investors expected to lose and how many they owned.
Tom Brady, a legend in the NFL and a former FTX brand ambassador, his ex-wife Gisele Bündchen, tech entrepreneur Peter Thiel, and investor Kevin O’Leary from Shark Tank were among them.
FTX attorney Andy Dietderich said in a statement on Jan. 11 that FTX had already recovered $5 billion in cash and cryptocurrency, so it appears that progress is being made.
Early bankruptcy filings from November suggested that more than one million creditors were involved, with $3 billion owed solely to the 50 largest creditors.
