FTX Customers’ Names Can Permanently Remain Undisclosed

A US court permitted now-bankrupt crypto exchange FTX to permanently remove individual customer names from all bankruptcy filings to avoid scams and identity theft risks.

“It is the customers who are the most important issue in this case,” US Bankruptcy Judge John Dorsey in Wilmington, Delaware, stated. “We want to make sure that they are protected and they don’t fall victim to any types of scams.”

Though the judge permitted a permanent removal of individual customer names of FTX, the permission to remove the names of companies and institutional investors from its customer lists was provided on a temporary basis. FTX need to make a new request in 90 days to keep those customer names a secret.

According to Judge Dorsey, institutional customers do not face the same risk as individuals, and their names could be valuable if FTX decides to sell its entire business or even the customer list.

FTX, which filed for bankruptcy
Bankruptcy

Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co

Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co
Read this Term last November, received the court’s permission to keep the names of its 9 million individual customers private for three months in January. FTX argued that even the names of these customers, without emails, in the public domain might put them at risk.