Judge’s FTX Client Confidentiality Order Receives Strong...
26 Jun 2023
Crypto News Source
Judge’s FTX Client Confidentiality Order Receives Strong Media Outcry
Bloomberg, Dow Jones, New York Times, and Financial Times have appealed Judge John Dorsey’s ruling on June 9, allowing FTX to “permanently remove” individual customers from all records of the confidential name and to protect the legal rights of FTX. A legal representative for the media organization argued that FTX is not entitled to a “new and broad exception” to bankruptcy disclosure requirements simply because its clients used cryptocurrencies.
Judge Dorsey previously ruled that he wanted to ensure customers” are protected from becoming a victim of any fraud,” which is consistent with the exception of U.S. bankruptcy law to address the potential risk of identity theft or other harm. Reportedly, bankrupt companies are generally required to disclose the names of their creditors and the amount of their debts, including those owed to individual customers. Still, there are exceptions in U.S. bankruptcy law. Disclosure of information may create the risk of identity theft or other damages. This is not the first time the media has protested the sealing of the names of FTX customers, having previously filed an objection on May 3.
Bloomberg, Dow Jones, New York Times, and Financial Times have appealed Judge John Dorsey’s ruling on June 9, allowing FTX to “permanently remove” individual customers from all records of the confidential name and to protect the legal rights of FTX. A legal representative for the media organization argued that FTX is not entitled to a “new and broad exception” to bankruptcy disclosure requirements simply because its clients used cryptocurrencies.
Judge Dorsey previously ruled that he wanted to ensure customers” are protected from becoming a victim of any fraud,” which is consistent with the exception of U.S. bankruptcy law to address the potential risk of identity theft or other harm. Reportedly, bankrupt companies are generally required to disclose the names of their creditors and the amount of their debts, including those owed to individual customers. Still, there are exceptions in U.S. bankruptcy law. Disclosure of information may create the risk of identity theft or other damages. This is not the first time the media has protested the sealing of the names of FTX customers, having previously filed an objection on May 3.
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