FTX does not want to give out customer data as this could negatively affect the ability to maximize the benefit for lenders.
Cryptocurrency exchange FTX declined to release client lists, explaining that keeping their data private is a critical factor in the platform’s bankruptcy case. Writes about it The Block.
According to him, the bank has discussed with several third-party companies the possibility of acquiring, investing in or reorganizing the FTX cryptocurrency exchange. He emphasized that the client list will be a valuable asset for potential buyers and investors. However, if the list of clients is made public, this may adversely affect the ability to obtain the maximum benefit for creditors.
Kofsky noted that the reorganization of the exchange will be carried out in accordance with the requirements of regulators, with the provision of safe custody of assets and use of a first-class trading platform.
FTX filed for bankruptcy and stopped customer withdrawals in November 2022. Sam Bankman-Fried, who then ran the company, said that the exchange was experiencing liquidity problems. However, later it turned out that he illegally used the money of clients for investments in his other firm, Alameda. As a result, more than 9 million users lost billions of dollars.
After the bankruptcy of The New York Times, The Financial Times and Bloomberg appealed to the court with a request to publish the names of 9 million customers of the exchange. However, there are fears that in this case, customers of the bankrupt exchange may face fraud. Also, many experts fear that if user data is known, FTX customers may repeat the experience of the bankrupt Celsius company.
Source: Cryptocurrency
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