There are a number of mainstream media, including Bloomberg and Financial Times, that insist on disclosing the personal information of the non-US FTX users, just as happened with Celsius. These users are creditors in the case. These major media companies have objected to attempts to keep the data of non-US customers of the bankrupt crypto exchange secret during the bankruptcy proceedings.
Media companies object to withholding names of FTX customers
In a application on April 4, the media companies Bloomberg, Financial Times, The New York Times and The Wall Street Journal jointly objected to the withholding of the names of the FTX clients. The main argument of this objection is that the press and the public have “a presumptive right of access to bankruptcy files.” The debtors of FTX advocate that the names of the customers be omitted and have done so in practice.
It Ad Hoc Committee of Non-US Consumers FTX said in a December 28 document that disclosing the names and private information of non-U.S. customers leaves customers vulnerable to identity fraud and targeted cyberattacks.
Giving up is not justifiable
The major media companies disagree. They argue that the omission of the creditors’ names in a bankruptcy cannot be justified, otherwise it would be part of the routine in every bankruptcy. They also believe that public disclosure is of utmost importance, as there is a great public interest in the US legal system’s approach to the unregulated cryptocurrency market. They add:
“The withholding of the names of FTX creditors has significantly hampered the reporting and analysis of this proceeding, leaving the public – and creditors – largely in a state of ambiguity about the enforcement of the bankruptcy laws of cryptocurrency companies in the United States. .”
In response to the December 28 document, Judge John Dorsey ruled on January 11 to withhold creditors’ personal information for an additional three months. His reason for this decision was that the confidential information could endanger creditors.