Four US media outlets have continued their efforts to reveal the identity of FTX’s non-US customers, filing new objections to an earlier motion.
Bloomberg, Dow Jones, The New York Times and the Financial Times first filed a motion on January 11 opposing allowing FTX and the Official Committee of Unsecured Creditors to redact and withhold information about their clients.
Although the court had already heard similar arguments from the four companies, on May 3 they filed a new objection to the Committee’s motion to seal the identities of non-US clients.
The latest media argument is that there is no legal basis for suppressing names under non-US data privacy laws.
The media giants argued that, under section 105 of the Bankruptcy Code – the provision that gives the bankruptcy court judicial power – there is nothing that allows foreign law to override the right of access to information under United States constitutional and statutory law Joined:
“At bottom, the plaintiffs’ desire to avoid ‘the application of the public disclosure requirements of US bankruptcy law.’ […] provides no basis for not disclosing their names.”
“United States law—constitutional and statutory—guarantees the public a strong presumptive right to inspect bankruptcy records. That right cannot be derogated from by a party’s assertion of legal obligations under foreign law,” the media added.
The first argument put forward – which was already alleged in a previous presentation – is that the names of FTX’s creditors do not constitute “confidential business information”.
The second – also raised in a previous filing – is that such disclosure would not subject creditors to “undue risk.”
FTX and the committee have until May 4 at 4:00 p.m. ET to file an objection.
The hearing for the submission will take place on May 17. at 1:00 p.m.
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