FTX customers are safe from being doxxed, for now

The names of up to 9 cardinal FTX customers are acceptable to stay confidential for astatine slightest 3 much months pursuing the latest ruling successful FTX bankruptcy proceedings. 

The determination was reportedly made by Judge John Dorsey successful the Delaware-based bankruptcy tribunal connected Jan. 11 successful effect to a 168-page filing by FTX connected Jan. 8 which requested the tribunal to withhold confidential lawsuit information.

Judge Dorsey said that helium remains “reluctant astatine this point” to disclose the confidential information, arsenic it whitethorn enactment creditors “at risk,” despite accrued pressure from respective media outlets:

"We're talking astir individuals present who are not contiguous – individuals who whitethorn beryllium astatine hazard if their sanction and accusation is disclosed.”

Days earlier, FTX lawyers argued “that disclosure of the accusation would make an undue hazard of individuality theft oregon unlawful wounded to the idiosyncratic oregon the individual’s property” and that the tribunal should usage its “broad discretion” nether the U.S. Bankruptcy Code to support those affected by the FTX collapse.

In precocious December, a radical of non-U.S. FTX customers besides pushed the Delaware bankruptcy tribunal to privatize lawsuit information successful a Dec. 28 joinder filing, arguing that nationalist disclosure would origin “irreparable harm.”

Judge Dorsey’s determination does nevertheless tally contrary to astir bankruptcy proceedings wherever creditor accusation is disclosed — which is what happened successful cryptocurrency lender Celsius’ bankruptcy proceedings successful Oct. 2022.

Related: Getting funds retired of FTX could instrumentality years oregon adjacent decades: Lawyers

The Delaware-based bankruptcy tribunal hasn’t been arsenic benignant to FTX equity holders, having released a Jan. 9 papers disclosing the investors expected to beryllium wiped retired and the fig of shares they held with FTX.

Among those included NFL fable and erstwhile FTX marque ambassador Tom Brady, his ex-wife Gisele Bündchen, tech entrepreneur Peter Thiel and Shark Tank capitalist Kevin O’Leary.

It appears that advancement is being made though, with FTX reported to person already recovered $5 cardinal successful currency and cryptocurrency, according to FTX lawyer Andy Dietderich successful a Jan. 11 statement.

According to aboriginal bankruptcy filings successful November, more than 1 cardinal creditors were speculated to beryllium involved, with $3 cardinal being owed to the 50 largest creditors alone.