Delaware court approves temporary redaction of FTX user data – crypto.news
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A Delaware court judge ruled that FTX’s creditor information remains confidential under company policy. This decision was made during the hearing of the FTX case on Tuesday.
FTX deletes customer data for the time being
John T. Dorsey, the Delaware judge presiding over the FTX lawsuit, has ordered the company’s creditor records be deleted. With this, the addresses and names of these investors will no longer be made public – this move correlates with the company’s initiative to keep user information from public view.
Meanwhile, the U.S. Board of Trustees filed an anti-FTX initiative demanding extreme transparency. The agency is a unit of the Ministry of Justice that oversees insolvency proceedings. Initially, it requested the release of user data to clarify the issue.
Accordingly, it does not disclose information to its investors without their consent. They further claimed that FTX’s customers are the company’s most valuable asset. Therefore, they must be protected from competitors.
Other partners of lawyers join the fight to protect clients
Led by lawyers from FTX’s defense group for vulnerable customers, they rejected the idea of exposing user data. Instead, they based their argument on the fact that confidentiality and privacy are the cornerstone of the industry. In addition, the dissemination of sensitive information as such could undermine the possibility of customer recovery and motivated participation in the insolvency process.
Judge Dorsey stated that he had to protect the interests of the affected investors. And the courtroom is the only place to do that outside of the Internet. However, he added that these customers are vulnerable to danger online.
Dorsey further said that hacking often leads to the leakage of sensitive information. However, protecting the participants in the bankruptcy process is very important. In particular, FTX lawyers focused on more than just FTX account holders.
Sullivan and Cromwell attorney James Bromley revealed that FTX is under constant attack. The first attack resulted in millions of dollars draining the company as it filed for bankruptcy. He pointed out that the exchange had been attacked afterwards.
The court has ordered the stock exchange to start rewarding its employees and creditors. On the 16th of Decembera second hearing will be held in Delaware court.