Keep personal info of FTX users private

Jeremy Sheridan, former assistant director of the U.S. Secret Service Bureau of Investigation, has warned that certain FTX customers could be targeted if their personal information were exposed.

In an April 20 declaration filed in the U.S. Bankruptcy Court for the District of Delaware, Sheridan upheld a motion from a debtor to withhold “certain confidential information” of FTX users. Currently Managing Director of FTI Consulting According to Sheridan, publishing the names of customers associated with failed crypto exchanges poses a “significant and unusual risk of identity theft, asset theft, personal attacks, and further online harm.” increase.

“If individual customer names were made public in these Chapter 11 cases, such information would provide potential bad actors with an itemized list of vulnerable targets,” Sheridan said. . “In particular, disclosing a debtor’s schedule of assets and liabilities provides criminals with a menu of potential targets. […] and each obligor’s customer’s respective cryptocurrency holdings. ”

According to Sheridan, FTX users with large amounts of cryptocurrency are effectively “targets on their backs” and can become victims of fraud by scammers who see their wallets. He gave examples of common online scams carried out via email and social media, such as fake business and romantic relationships, SIM swaps, and phishing attacks.

“Perpetrators of fraud and online attacks are encouraged, motivated and drawn to high-profile cases like Chapter 11 Cases. The fact that it is global and pseudo-anonymous has already made it an attractive target for criminals.”

The legal team representing FTX’s debtors released a list of creditors to whom the exchange owes debts in January. However, the names and personal information of about 10 million users were redacted. Groups of news outlets, including Bloomberg and the New York Times, have opposed the editorial, arguing that the media and the public have a “right to access” information.

Related: FTX CEO Says He’s Considering Exchange Relaunch: Report

Judge John Dorsey extended the deadline for redacting customer information until April 20, and also expressed concern that users could be “endangered” by having their names published. FTX’s Board of Debtors and Unsecured Creditors has filed a motion requesting the bankruptcy court to reconsider the compilation order once the extension expires. The issue is scheduled for a hearing on May 17, depending on the objections filed.

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