A group of non-US FTX clients are lobbying to have their names and private information removed from court documents as part of the bankruptcy process. of Chapter 11 of the cryptocurrency exchange.
In a membership application filed on December 28, the “FTX.com Non-US Customers Ad Hoc Committee” (Ad Hoc Committee) stressed that publicly disclosing customer names and private information poses a potential risk of identity theft, targeted attacks and “other harm”. He said:
“Requiring Debtors to disclose FTX.com customer names and other identifying information to the general public would cause irreparable harm, further victimizing FTX.com customers whose assets were misappropriated.”
The group is made up of 15 people individually or as representatives, which suggests that there are a much larger number in the group. Total, the Ad Hoc Committee claims to represent individuals or entities with assets locked up on FTX.com worth approximately $1.9 billion.
A joinder refers to a type of court filing in which several lawsuits have been joined, or an additional party has been joined to another filing..
In this case, the Ad Hoc Committee joins the “Motion of the debtors for the entry of provisional and final orders”, which intends to withhold confidential information from clients, among other things.
“The Ad Hoc Committee submits this Adherence in support of the Drafting Motion request to suppress the names and other identifying information of FTX.com customers from any documents filed or made publicly available in this proceedingincluding the Matrix of Creditors, the Consolidated List of the Top 50 Creditors, and the Lists and Declarations,” the filing says.
However, The US trustee had previously filed an objection to the original motion on December 12, arguing that keeping the information private could threaten the transparency of FTX’s Chapter 11 bankruptcy process. and that the public had a “general right of access to court records.”
posts like The Wall Street Journal (WSJ), The New York Times, Bloomberg and the Financial Times have even called for the information to be disclosed to the public, arguing that this is what usually happens in these types of bankruptcy proceedings..
“Bankruptcy courts typically require transparency in the affairs of troubled companies, including their creditors, in exchange for Chapter 11 protections”wrote WSJ journalist Andrew Scurria on December 29.
A similar incident already happened with the Celsius Chapter 11 bankruptcy; its court documents revealed private information on thousands of customers in October, much to the dismay of the crypto community.
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