The organization emphasized that disclosing the names and private information of consumers might lead to identity theft, targeted assaults, and “other harm.”
A handful of non-U.S. FTX clients are requesting that their names and private information be removed from court filings as part of the Chapter 11 bankruptcy procedure for the cryptocurrency exchange.
In a joinder filing dated December 28, “The Ad Hoc Committee of Non-US Customers of FTX.com” (Ad Hoc Committee) emphasized that disclosing the identities and private information of customers might result in identity theft, targeted assaults, and “other harm.” It said:
“Requiring the Debtors to divulge the names and other identifying information of FTX.com consumers to the broader public would inflict irreparable injury, victimizing further the FTX.com customers whose funds were plundered.”
The group consists of 15 persons in individual or representative positions, indicating that there are significantly more members. The Ad Hoc Committee claims to represent individuals and organizations with about $1.9 billion in locked assets in FTX.com.
A joinder is a sort of court file in which several lawsuits are combined or an extra party is connected to an existing case.
In this case, the Ad Hoc Committee is supporting the “Motion of Debtors for Entry of Interim and Final Orders,” which aims, among other things, to conceal personal customer information.
The document adds, “The Ad Hoc Committee submits its Joinder in support of the Redaction Motion’s request to redact the names and other identifying information of FTX.com customers from any material filed or made publicly accessible in these proceedings, including the Creditor Matrix, Consolidated Top 50 Creditors List, and Schedules and Statements.”
On December 12, however, the U.S. Trustee filed an opposition to the initial request, stating that keeping material secret might harm the openness of FTX’s Chapter 11 bankruptcy proceedings and that the public has a “general right of access to court documents.”
Publications such as The Wall Street Journal (WSJ), The New York Times, Bloomberg, and the Financial Times have even demanded that the material be made public, stating that this is the norm for these sorts of bankruptcy proceedings.
Andrew Scurria of the WSJ said on December 29: “In exchange for Chapter 11 protections, bankruptcy courts often mandate openness on the affairs of distressed enterprises, especially their creditors.”
In October, court records regarding the Chapter 11 bankruptcy of Celsius revealed the private information of thousands of clients, much to the dismay of the cryptocurrency community.
Also Read: Shiba Inu ($SHIB) Becomes One of Ethereum Whales’ Largest Investments as SHIBArmy Expands
