A group of FTX clients have asked the US Bankruptcy Court to keep their names confidential because revealing their identity could put them in personal danger as well as identity theft.
According to Reuters, a group of clients of the bankrupt cryptocurrency exchange FTX outside the United States have filed a petition with bankruptcy judge John Dorsey to maintain the confidentiality of their identities. The Group contends that disclosure of this information could be dangerous to them.
According to them, “digital asset holders are particularly susceptible to fraud and theft because cryptocurrencies are difficult to trace and there are not enough security measures to protect assets.” In addition, the group believes that this could be detrimental to the FTX bankruptcy process as a whole.
It is assumed that the collective debt of this group of clients may be about $ 2 billion. Their request was opposed by the bankruptcy supervision service of the US Department of Justice, as well as various media outlets, including the New York Times and WSJ. The court will hear the arguments of the clients and issue a verdict on January 11.
Earlier, the Bahamas Securities Commission (SCB) reported that it controls the assets of the FTX exchange and its subsidiaries in the amount of $3.5 billion. These are mainly user deposits.
Source: Bits
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