Jan 12, 2023 08:39 UTC
Jan 12, 2023 at 08:39 UTC
FTX Customer names will remain sealed for now, rules judge
The decision comes after a Jan. 8 filing by FTX’s attorneys, who argued that public exposure could produce an overdue threat of identity theft or unlawful injury to FTX creditors.
The names of over to nine million FTX guests are set to remain nonpublic for at least three further months following the rearmost ruling in FTX ruin proceedings.
The decision was reportedly made by Judge John Dorsey in the Delaware- grounded ruin court onJan. 11 in response to a 168- runner form by FTX onJan. 8, which requested the court to withhold nonpublic client information.
Judge Dorsey said that he remains “ reticent at this point ” to expose the nonpublic information, as it may put creditors “ at threat, ” despite increased pressure from several media outlets
“ We ’re talking about individuals who aren’t present – individuals who may be at threat if their name and information is exposed. ”
Days before, FTX attorneys argued “ that exposure of the information would produce an overdue threat of identity theft or unlawful injury to the individual or the existent’s property ” and that the court should use its “ broad discretion ” under theU.S. Bankruptcy Code to cover those affected by FTX’s collapse.
In late December, a group ofnon-U.S. FTX guests also pushed the Delaware ruin court to keep client information private, arguing in aDec. 28 joinder form that public exposure would beget “ irrecoverable harm. ”
Judge Dorsey’s decision does still run contrary to utmost ruin proceedings where creditor information is bared which is what happened in cryptocurrency lender Celsius ’ ruin proceedings in October.
The Delaware- grounded ruin court has n’t been as kind to FTX equity holders, having released aJan. 9 document that bared the investors anticipated to be wiped out and the number of shares they held with FTX.
Among those included NFL legend and former FTX brand minister Tom Brady, hisex-wife Gisele Bündchen, tech entrepreneur Peter Thiel and Shark Tank investor Kevin O’Leary.
It appears that progress is being made however, with FTX reported to have formerly recovered$ 5 billion in cash and cryptocurrency, FTX attorney Andy Dietderich said in aJan. 11 statement.
According to early ruin forms in November, further than 1 million creditors were suspected to be involved, with$ 3 billion being owed to the 50 largest creditors alone.