BTC-Newswire

Mainstream media challenge decision to protect FTX customers: Report

Press Releases Crypto News Cointelegraph Mainstream media challenge decision to protect FTX customers: Report

The four major media outlets advocating to release FTX customer names have opposed the decision to seal them. Meanwhile, a crypto lawyer told Cointelegraph that “there is clear evidence” of potential harm if the names were to be disclosed.

According to a June 23 Reuters report, Bloomberg, Dow Jones & Company, The New York Times and the Financial Times have appealed the decision of United States bankruptcy Judge John Dorsey to seal the names of FTX customers from the public.

The decision to allow FTX to “permanently redact” the names of individual customers from all court filings was made by Dorsey on June 9 for the safety of the customers, declaring that they are the “most important issue in this case.“

However, in a June 22 court filing, legal representatives for the media organizations have reportedly challenged this, arguing that FTX is not entitled to a “novel and sweeping exception” to bankruptcy disclosure requirements simply because its “customers used cryptocurrency.”

Media group appeals decision to permanently redact the names of a million FTX customers.

We believe keeping the customer list a trade secret is vital to improve recovery for all in bankruptcy reorganisation.

Seeking to further harm people who are already down is unfortunate. pic.twitter.com/0fbpvIE9We

— FTX 2.0 Coalition (@AFTXcreditor) June 23, 2023

The media outlets have stood by the fact that bankrupt companies are usually obligated to disclose the names and amounts owed to their creditors.

Despite this, Dorsey decided to keep the names sealed, stating that he wanted to ensure that customers “don’t fall victim to any scams.”

This is in line with the exception of U.S. bankruptcy law, which addresses the potential risk of harm by disclosure.

It is not the first time the media outlets have objected to the names of FTX customers being sealed, having Go to Source to See Full Article
Author: Ciaran Lyons

Did you like this?
Tip BTC Newswire with Cryptocurrency