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Identities Of FTX Creditors Still Approved By The Court Not To Be Disclosed

Harold - Coincu
2022-11-23 07:36
At the company’s first court hearing on Tuesday, the judge ruled that FTX creditors, including wealthy investors who don’t want their names made public, can continue to be anonymous and still participate in the bankruptcy case, according to a Bloomberg report.
The US Bankruptcy Code often mandates that the names be filed in publicly accessible filings. According to FTX representatives, those creditors are also customers, and if competitors knew about it, they might snatch their clients away.
James Bromley, an attorney for FTX, opened the session by claiming that a sizable portion of the group’s assets had either been taken or were missing.
The 50 largest unsecured creditors, who collectively owed the defunct crypto exchange $3.1 billion, were permitted to have their names redacted by US Bankruptcy Judge John Dorsey.
“On an interim basis, I’ll enter the order allowing for the redaction of the names and addresses. Everyone in the room knows the internet is wrought with potential dangers,” said Judge John Dorsey
US Bankruptcy Judge John Dorsey. Source: Blommberg
Benjamin Hackman, a representative for the US Trustee, argued in favor of providing more information than is currently available on the companies to which FTX or its related entities are indebted.
“We oppose the redaction of the names and addresses of customers who are not individuals. There should be transparency about who those entities are, especially on the top 50 list.”
At least two groups of crypto creditors sent lawyers to the hearing to support the company’s request to keep their identities secret. One included members that are among FTX’s largest unsecured creditors.
Dorsey agreed to hold a hearing next month to give objectors, including the US Trustee, the federal bankruptcy watchdog, the chance to convince him to release the names.
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