<\/p>\n
Bankrupt cryptocurrency exchange FTX has reportedly been granted permission to permanently remove individual customers from all court filings, while the names of companies and institutional investors will be sealed on a “temporary basis.”<\/p>\n
In recent times, several mainstream media outlets have pushed for access to the list of FTX customers, arguing that the press and public have a \u201cpresumptive right of access to bankruptcy filings.\u201d<\/p>\n
However, FTX has consistently objected to these requests, arguing that disclosing the names could put these individuals at risk, as well as potentially undermine the sale value of the crypto exchange.<\/p>\n
According to a June 9 Reuters report,\u00a0Judge John Dorsey ruled in the Delaware-based bankruptcy court, that FTX is permitted to “permanently redact” the names of individual customers from all filings, in an effort to protect their safety.<\/p>\n
Dorsey reportedly stated that individual customers “are the most important issue in this case,” adding:<\/p>\n
\u201cWe want to make sure that they are protected, and they don\u2019t fall victim to any scams.\u201d<\/p><\/blockquote>\n
While Dorsey acknowledged the potential risk of scams and identity theft for individuals if their names were disclosed, he doesn’t believe companies and institutional investors would face the same vulnerabilties.<\/p>\n
Dorsey granted these entities to be removed from the list on a \u201ctemporary basis,” with FTX obliged to make a new request in 90 days to maintain the confidentiality of those names.<\/p>\n
However, it was reiterated that while companies and institutional investors do not face the same risks as individuals, their names could still hold significant value if FTX were to sell the exchange or customer list separately.<\/p>\n
Related: <\/em><\/strong>FTX bankruptcy judge approves sale of LedgerX<\/em><\/strong><\/p>\n
Kevin Cofsky, a partner at investment bank Parella Weinberg, and member of the FTX restructuring team,\u00a0argued in a court hearing on June 8 that releasing customer names \u201cwould be detrimental\u201d to the restructuring efforts.<\/p>\n
\nInvestment banker Kevin Cofsky, FTX 2.0 advocate. pic.twitter.com\/nvGU9WTM6P<\/a><\/p>\n