FTX customer names will be published
2022.12.16 13:01
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FTX customer names will be published
Budrigannews.com – On Friday, a judge in the United States who is in charge of FTX’s bankruptcy said that he would let media companies argue that the defunct crypto exchange should publicly disclose the names of its customers. According to U.S. Bankruptcy Judge John Dorsey in Delaware, the Financial Times, Bloomberg, the New York Times, and Dow Jones could present their arguments regarding the need for FTX to disclose customer names at a hearing on January 11.
In a court filing, the media companies argued that if creditors began fighting anonymously over how much money they should receive, bankruptcy proceedings could become a “farce” if the names of up to one million customers were kept secret.
FTX has argued that the U.S. bankruptcy practice of disclosing information about creditors, including customers, could make them vulnerable to scams, violate privacy laws, and allow rivals to steal them, hurting the value of the FTX as it looks for new customers.
During its bankruptcy case, FTX announced on Friday that it would sell its LedgerX, Embed, FTX Japan, and FTX Europe businesses. According to a FTX court filing, the four businesses are relatively distinct from the broader FTX group. Additionally, each has its own distinct management teams and customer accounts.
FTX has already received dozens of unsolicited offers, despite the fact that it has no intention of selling any of the businesses. By holding auctions in February and March, FTX hopes to attract additional bids.
It has been challenging to auction the assets of other bankrupt crypto businesses, such as Celsius Network and crypto lenders Voyager Digital. Celsius stated in a court filing on Thursday that it had postponed an auction of its business in an effort to improve the bids it had received. Voyager had planned to sell its assets to FTX prior to FTX’s implosion.
At the hearing on Friday, FTX attorneys also said that they have made “significant progress” on recovering assets and are working to settle a dispute with Bahamian securities regulators and liquidation attorneys for FTX Digital Markets, which is based in the Bahamas.
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Jason Zakia, an attorney for the liquidators based in the Bahamas, claims that FTX has prevented the Bahamas bankruptcy from progressing by preventing access to data and casting “aspersions” on the Bahamas government’s actions. If the two parties are unable to reach an agreement, Dorsey will address the data access dispute on January 6.
The crypto exchange’s dramatic week comes to an end on Friday with the bankruptcy hearing. On Monday, FTX CEO John Ray testified before the United States Congress, and on Wednesday, FTX opposed the demand of liquidators based in the Bahamas for access to its systems and records. Founder Sam Bankman-Fried was arrested on fraud charges.
