Some mainstream media outlets have opposed attempts to withhold the identities of cryptocurrency exchange FTX’s non-US clients during its bankruptcy proceedings.
on a 4th of april presentation Before a Delaware bankruptcy court, the media Bloomberg, The Financial Times, The New York Times and its parent company, Dow Jones & Company, jointly opposed the redaction of client names, arguing that the press and the public have “a presumptive right of access to bankruptcy filings.”
Media group files objection to redaction of FTX client names.
If the challenge is successful, the names of up to 1.4 million customers and their FTX balances will be made public. pic.twitter.com/w0avsJ6JYv
— FTX 2.0pium (FTX Creditor) (@AFTXcreditor) April 5, 2023
While FTX debtors can and have argued that creditor names be removed from bankruptcy filings, the media believes that FTX and its clients have not “justified such secrecy.”
FTX.com’s Non-US Customers Ad Hoc Committee asserted in a Dec. 28 filing that publicly disclosing the names and private information of non-US customers leaves them vulnerable to identity theft, targeted attacks and “other injuries.”
In the recent filing, the media argued that if “permanent sealing” of users were permissible on the grounds alleged by FTX and the Committee, “then sealing customer names would be routine in virtually all bankruptcy proceedings.” “.
Related: FTX EU launches withdrawal website to pay European users
They added that “public access is of the utmost importance here,” as the magnitude of the FTX collapse has “sparked intense public interest in the US legal system’s approach to the burgeoning and largely unsuccessful cryptocurrency market. regulated”, adding:
“The sealing of FTX creditor names to date has significantly impeded reporting and scrutiny of these proceedings, leaving the public – and creditors – largely in the dark as to the application of the laws. United States bankruptcy in the crypto context. ”
In response to the Committee’s December 28 filing, Judge John Dorsey allowed the clients’ names and addresses to be blacked out for another three months on January 11, saying he “remained reluctant at this point” to reveal the confidential information that may put creditors “at risk”.
Crypto lending platform Celsius also tried to ensure that the names of its clients remained redacted during its bankruptcy proceedings, but failed to convince the judge, resulting in the disclosure of the personal details of thousands of clients on October 5, 2022.
A hearing on the matter is scheduled for April 12 at 1:00 pm ET.
NFT creator Sarah Zucker: The Sarah Show’s analog past meets fast-paced digital future
