FTX Seeks to Protect 9 Million Customers’ Privacy in Bankruptcy Proceedings

1: u.s. bankruptcy judge john dorsey was involved in a case involving ftx, a company in the process of restructuring. attorneys for the creditors committee argued that releasing the names of ftx’s 9 million customers could further harm the value of the company. david finger, an attorney representing media outlets, made an argument for releasing the names of ftx’s customers, while ftx’s legal team suggested that releasing names could put these customers at risk of personal harm.

2: the case took place in the u.s. bankruptcy court, and judge dorsey ultimately decided to allow ftx to keep the names of customers under seal for three months. this is in contrast to the celsius bankruptcy proceedings, which released names, crypto wallet ids, transaction types and amounts, etc. ftx’s bankruptcy case was originally transferred from the bahamas with creditor names redacted.

3: ftx is attempting to protect the identity of its customers due to privacy concerns, as well as the potential for personal harm if their names were released. there are also inherent values within the lists of ftx’s customers, as ftx is attempting to market the list as a salable asset to buyers. the data leak from celsius generated a lot of backlash on social media, making ftx wary of potential consequences if they were to release their customer list.


By Evey Lovelace

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