Major Media Wants FTX Users’ Names, Says There’s No Danger

Mainstream media outlets including the New York Times and Bloomberg are pushing for FTX creditor names to be released in the public interest

article-image

FTX founder Sam Bankman-Fried | Blockworks exclusive art by Axel Rangel

share

A string of major media organizations have filed a motion in a US federal court seeking the release of FTX creditor identities, claiming their concealment turns the entire bankruptcy proceeding “into a farce.”

The New York Times, Bloomberg, Financial Times and Wall Street Journal parent Dow Jones & Company have argued the public has a right to access judicial records detailing names of FTX customers affected by the exchange’s demise. 

“Debtors [FTX] have been accused of lack of transparency in their business,” they said in their motion last Friday. “That mindset appears to have carried over to this bankruptcy, as they have taken the extraordinary step of seeking to keep under seal their list of creditors.”

Crypto exchange FTX filed for Chapter 11 bankruptcy in the District Court of Delaware last month. The firm went bust following a $6 billion bank run fueled by rumors of insolvency and allegations of commingling user funds with sister trading unit Alameda Research.

FTX has since worked to withhold certain personal and confidential information of its users. The media companies are only seeking a list of names, with no objection to the continued sealing of residential addresses and contact information, per the filing. 

The outlets say proofs of creditor claims will not be anonymous throughout FTX’s bankruptcy, so there’s no point in keeping identities confidential. Publishing names does not expose creditors to personal danger, the organizations said, pointing to the release of creditor details during crypto lender Celsius’ bankruptcy case.

Loading Tweet..
Industry watchers are rightfully wary when personal information of crypto users is made public.

As Blockworks previously reported, financial information tied to hundreds of thousands Celsius creditors were revealed in public court documents in October. 

Their release has made Celsius creditors prime targets for phishers posing as attorneys in a bid to gather sensitive and potentially lucrative data. Celsius also filed to redact names of its users.

As for the FTX case, the media outlets cited federal bankruptcy law, pointing to a particular section that grants them or “any interested party” the right to obtain information deemed within the public interest.

“The news media acts as the eyes and ears of the public, informing the public of issues of the day,” they said. “This valuable social function is hampered by sealing of judicial records.”


Don’t miss the next big story – join our free daily newsletter.

Tags

    Upcoming Events

    Hilton Metropole | 225 Edgware Rd, London

    Mon - Wed, March 18 - 20, 2024

    Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

    Salt Lake City, UT

    WED - FRI, OCTOBER 9 - 11, 2024

    Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

    recent research

    Research report - cover graphics (1).jpg

    Research

    In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.

    article-image

    BUZZ holds shares of Coinbase, Robinhood and MicroStrategy

    article-image

    Opinion: Even though I didn’t pay for my “Diamond Hands” burger with BTC, don’t let that fool you into thinking that crypto’s development is futile

    article-image

    The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally

    article-image

    While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders

    article-image

    Trading volumes totalled $154 billion in Q4, including $125 billion in institutional volume

    article-image

    DeFi on Bitcoin is all the rage right now and Stacks is positioned to benefit