Non-US customers don’t want their private details in FTX bankruptcy filing

A group of non-US based customers stressed that their private details in the FTX’s US bankruptcy documents may pose a significant risk to their privacy.

FTX exchange was a popular Crypto Exchange and also was ranking at the second position in the Crypto sector in terms of 24 hours global Crypto trade volume on its platform. But misuse of the user’s fund by FTX co-founder Sam Bankman-Fried (SBF) resulted in the downfall of FTX’s business. On 11 Nov, the FTX team filed for bankruptcy in a US-based bankruptcy court under chapter 11.

The services of the FTX exchange were available globally, so FTX also submitted all individual details of customers in the bankruptcy filing, which includes names, address, fund holding & also their overall financial activities.

On 28 Dec,  “The Ad Hoc Committee of Non-US Customers of FTX.com” submitted a joint filing in the court to remove all critical data of the non-US customers to protect them against any potential risk of identity theft. 

Joinder’s filing asserted:

“Requiring the Debtors to disclose the FTX.com customers’ names and other identifying information to the general public would cause irreparable harm, further victimizing the FTX.com customers whose assets were misappropriated.”

In this committee, there are a total of 15 people and they are representing non-US based customers with over $1.9 Billion funds locked in FTX exchange.

Opposite of this, In the second week of this month a motion was filed by the U.S. Trustee to keep the details of the FTX customers open in the FTX bankruptcy filing, so that bankruptcy proceedings remain transparent. 

This is not the first time in the history of the Crypto sector, earlier this year Celsius’s bankruptcy filing also exposed the details of all the customers, which was really a very big sensitive matter. At that time many people raised their voices but happened nothing.

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