FTX’s bankruptcy proceedings continue after the company has filed for bankruptcy after a fraud-induced collapse.
A ruling by Judge John Dorsey in a Delaware bankruptcy court has ensured that the names of customers of FTX will remain confidential.
Multiple media outlets suggest Judge Dorsey stated that he is currently hesitant to reveal confidential information due to the potential risk it may pose to creditors.
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The decision was made in response to a filing by FTX on Jan 8. which requested the court to keep customer information private. The list includes over 9 million names and contact information for an initial six-month period.
According to the legal documents, the company’s committee asked for permission to keep the names, addresses, telephone numbers, and email addresses of the company's customers private or sealed for a certain period of time to help create transparency, credibility, and trust in the case.
Per 168 pages long court filing, the committee stated that this relatively short period of time could give the necessary duration to the debtors and the committee to assess the value of the customer information. Additionally, it would help relieve the potential physical, emotional, and economic harm that disclosure of the customer information would have on the debtors' customers and other creditors.
However, Judge Dorsey's ruling goes against the typical disclosure of creditor information in bankruptcy proceedings.
Nevertheless, the Delaware-based bankruptcy court has not protected FTX equity holders and has released a document on Jan 9. disclosing the expected loss for investors and the number of shares held with FTX.
In other FTX-related news, the company's announcement for recovering $5 billion in cash and liquid cryptocurrencies.