Mainstream media challenge decision to protect FTX customers: Report

Four major media outlets that insist on disclosing FTX’s customer names oppose the decision to seal. Meanwhile, a cryptocurrency lawyer told Cointelegraph that there is “clear evidence” that potential harm could result if names were made public.

According to Reuters on June 23, reportBloomberg, Dow Jones & Company, The New York Times, and the Financial Times have appealed Judge Dorsey’s decision not to publicly disclose the names of FTX customers.

The decision to allow FTX to “permanently redact” the names of individual clients from all court filings was made on June 9, citing Mr. Dorsey’s citing client safety as the client’s “most important decision in this lawsuit.” an important issue,” he declared.

However, the media’s legal representatives disputed this in a June 22 court filing, stating that FTX has a “novel and full-fledged approach” to bankruptcy disclosure requirements simply because “customers have used cryptocurrencies.” He reportedly argued that he did not have the right to grant “exceptional exceptions”.

The media group has appealed the decision to permanently redact the names of one million FTX customers.

We believe that keeping our customer list confidential is critical to improving everyone’s recovery in bankruptcy reorganization.

It’s a shame to try to hurt people who are already depressed. pic.twitter.com/0fbpvIE9We

— FTX 2.0 Coalition (@AFTXcreditor) June 23, 2023

The press has endorsed the fact that companies that go bankrupt are usually obligated to disclose the names of their creditors and the amount owed.

Nonetheless, Dorsey decided not to disclose his name, saying he wanted customers to “not fall victim to fraud.”

This is in line with exceptions in US bankruptcy law that address the potential risk of harm from disclosure.

This isn’t the first time the press has challenged the delisting of FTX customer names, having previously challenged it on May 3.

An earlier application argued that the disclosure of names would not expose creditors to “undue risk” and that the list did not constitute “commercially sensitive information.”

Related: FTX seeks to extort $700 million from Bankman-Fried friends and affiliated funds

Dubai-based cryptocurrency attorney Irina Heber told Cointelegraph that she applauded the wisdom behind the Dorsey ruling, which “allowed FTX to keep customer names confidential.”

“This allegation by the press appears to completely ignore the inherent risks individuals face if their identities are revealed,” Heber said.

“This is not a hypothetical concern and there is clear evidence of the harm that such disclosure could cause. The possibilities are endless.”

Heber cited the “Celsius incident” that led to a “surge in phishing attacks” in July 2022.

Celsius Depositor A warning email was sent after the company disclosed that certain customer data was compromised after an internal employee leaked a list of emails to a malicious third party. .