Mainstream media outlets, including Bloomberg, The Financial Times and The New York Times, have objected to FTX’s attempts to keep the names of its non-US customers confidential.
The media outlets argued in a joint filing to a Delaware Bankruptcy Court on April 4 that the public has a “presumptive right of access to bankruptcy filings” and that FTX and its customers have failed to justify keeping their names private.
However, FTX’s debtors have argued for the names of its creditors to be redacted, which has been accepted by the court.
The Ad Hoc Committee of Non-US Customers of FTX.com argued in a December 28 filing that making public the names and private information of non-US customers could lead to identity theft and other forms of targeted attacks.
The media outlets contested this, stating that if such redaction was permissible, it would become routine in virtually every bankruptcy proceeding.
The magnitude of the FTX collapse has ignited intense public interest in the US legal system’s approach to the largely unregulated cryptocurrency market, and public access is of the utmost importance in this case, the media outlets added.
In response to the Committee’s filing, Judge John Dorsey allowed the names and addresses of FTX’s customers to be redacted for a further three months on January 11, citing concerns about creditors’ safety. However, the media outlets argue that sealing FTX’s creditors’ names has impeded reporting and analysis of the proceedings, leaving the public and creditors largely in the dark.
FTX is not the first cryptocurrency company to face pressure to reveal customer names during bankruptcy proceedings.
Celsius had similarly tried to keep its customers’ names confidential but failed to convince the judge, resulting in the personal details of thousands of customers being disclosed on October 5, 2022. A hearing on the matter is scheduled to take place on April 12 at 1:00 pm
FTX User Names
In Conclusion tthe joint filing to a Delaware Bankruptcy Court, mainstream media outlets have objected to FTX’s attempts to keep the names of its non-US customers confidential during its bankruptcy proceedings.
While FTX’s debtors have argued for the names of its creditors to be redacted, the media outlets argue that the public has a “presumptive right of access to bankruptcy filings” and that FTX and its customers have failed to justify keeping their names private.