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THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

Cryptocurrencies

Cryptocurrencies

FTX customers’ names will not be divulged by bankruptcy court.

Photo Credit: DADO RUVIC Photo Credit: DADO RUVIC
Photo Credit: DADO RUVIC Photo Credit: DADO RUVIC

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The bankruptcy court will not divulge FTX customers‘ names. On Friday, bankrupt crypto exchange FTX convinced a U.S. judge to delete client names from all bankruptcy papers, arguing that doing so would expose customers to scams and identity theft.

After hearing testimony that publishing customers’ names would put them at risk even if other identifying information like their email addresses were kept secret, U.S. Bankruptcy Judge John Dorsey in Wilmington, Delaware, allowed FTX to redact their names from its bankruptcy filings permanently.

Dorsey said customers are the most critical problem. We wish to safeguard them against scammers.

In January, Dorsey permitted FTX to conceal 9 million client names for three months.

On Friday, Dorsey also approved FTX temporarily removing firms and institutional investors from its customer lists, stating FTX must make a new request in 90 days. Dorsey said those consumers do not suffer the same risks as people, but their names could be valuable if FTX sells its crypto exchange firm or customer list.

Dorsey also ordered FTX’s U.S. bankruptcy team and liquidators overseeing its Bahamian affiliate, FTX Digital Markets’ to wind down to find a mediator and avoid inconsistent court rulings.
Dorsey refused the Bahamian liquidators’ request to start litigation over U.S. debtors’ assets in Bahamas courts. On Thursday, the judge indicated he would not defer to a Bahamian court’s verdict on which FTX business should handle assets and reimburse customers. On Friday, he added he would not expect a Bahamian court to obey his orders.

Dorsey said he had been “lying in bed at 3 a.m. trying to figure out what to do with this mess.”

The Bahamian insolvency case began one day before FTX Trading and more than 100 affiliates filed for bankruptcy in Delaware in November to address charges that the company abused and lost billions of dollars in clients’ crypto deposits.

FTX founder Sam Bankman-Fried and many insiders were indicted for fraud in the company’s downfall. Bankman-Fried denies charges. Other insiders pleaded guilty and cooperated with prosecutors.


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