FTX Customers’ names will not be revealed and remained sealed unless there is a court order to do so.
Customers’ names will not be revealed unless there is a court order to do so. This decision was made to protect the customer’s privacy. Moreover, to prevent any potential harm from arising due to the disclosure of names. The judge ruled that the customers have a legitimate expectation of privacy. And that their names should remain confidential until further notice.
Following the latest ruling in FTX’s bankruptcy proceedings, up to nine million of its customers’ identities are safeguarded. And will remain anonymous for at least three more months.
On January 11th, Judge John Dorsey of the Delaware-based bankruptcy court made a ruling. This happens in response to an expansive 168-page filing by FTX on January 8th that requested withholding confidential customer data.
FTX Customer Names Will Remain Sealed
Despite the media’s mounting insistence to uncover confidential information. In addition, Judge Dorsey remains opposed to disclosure due to potential risks for creditors. He stated that he was “reluctant at this point” in doing so.
“We’re talking about individuals here who are not present – individuals who may be at risk if their name and information are disclosed.”
After FTX’s lawyers submitted their Jan. 8 filing, the decision was reached that public disclosure could pose a serious threat of identity theft or potentially harmful outcomes for creditors.
Just days prior, FTX’s legal team argued that revealing the information would put individuals and their property at unnecessary risk of identity theft or harm. The lawyers asked for wide discretion from the court based on U.S Bankruptcy Code to keep those affected by FTX’s fall safe and secure.
Judge Dorsey’s ruling is a clear statement about the safety of FTX customers, as well as a historic precedent for safeguarding customer identities. It is a testament to the commitment that FTX has to preserve the privacy of its customers.
The court will continue to monitor the progress of FTX’s bankruptcy proceedings. Furthermore, we hope that these protections extend even further throughout the duration of them. In the meantime, FTX will continue to work diligently to ensure that customer data remains secure and confidential.
