The Financial Times, The Wall Street Journal, and The New York Times have petitioned to reveal the names of creditors of the defunct cryptocurrency exchange FTX.
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According to the lawsuit, the news media serves as the public’s eyes and ears, informing them of current events. As a result, concealing judicial records will impede this critical social function.
The news companies argued that the disclosure of names of creditors does not pose any present risk of identity theft or personal harm.
An earlier report from TheCoinRise revealed that the bankrupt FTX exchange may have over a million creditors according to bankruptcy paperwork submitted to the Federal court database system, PACER.
A filing from FTX Chapter 11 bankruptcy proceedings revealed the amount owed to unnamed creditors, the largest of which was slightly more than $225 million.
According to the filing, the total amount owed by its top ten creditors is just under $1.45 billion. It came to almost $3.1 billion in total. The list was, however, devoid of names of the creditors.
The Anonymity of FTX Creditors
A recent report from the Financial Times has given updates about the anonymity of FTX creditors.
The report stated that FTX lawyers are not open to reveal the identity of FTX creditors. The lawyers stated that FTX’s top 50 creditors do not want to disclose their affairs openly to the public. Most crypto investors also want to avoid scrutiny from the public, government officials, the press, and also their own customers.
Brian D. Glueckstein, a partner at Sullivan and Cromwell LLP, stated that the disclosure of FTX creditors could affect the broader crypto market negatively by destabilizing the ecosystem. He however added that the identities of the biggest creditors should not be kept confidential forever.
Another justification offered by FTX’s legal team is that the GDPR legislation provides extra privacy rights for creditors in the UK and the EU, making it unfair to reveal the identity of US creditors.
The Financial Times article also highlighted the names of people and companies that may have an interest in FTX, including BlockFi, Jump Trading, and BitGo, among others.
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