The names of up to nine million FTX customers are set to remain confidential for at least three more months following the latest ruling in FTX bankruptcy proceedings.
The decision was reportedly made by Judge John Dorsey in the Delaware-based bankruptcy court on Jan. 11 in response to a 168-page filing by FTX on Jan. 8, which requested the court to withhold confidential customer information.
Judge Dorsey said that he remains reluctant at this point to disclose the confidential information, as it may put creditors at risk, despite increased pressure from several media outlets.
FTX lawyers argued that disclosure of the information would create an undue risk of identity theft or unlawful injury to the individual or the individual’s property and that the court should use its broad discretion under the U.S. Bankruptcy Code to protect those affected by FTX’s collapse.
In late December, a group of non-U.S. FTX customers also pushed the Delaware bankruptcy court to keep customer information private, arguing in a Dec. 28 joinder filing that public disclosure would cause irreparable harm.
Judge Dorsey’s decision does however run contrary to most bankruptcy proceedings where creditor information is disclosed which is what happened in cryptocurrency lender Celsius’ bankruptcy proceedings in October.
