• Major media outlets have filed an appeal challenging a court’s decision to redact the names of FTX users.
• The media companies argue that there is a “presumptive right” for the public to inspect bankruptcy filings and that concealing the names denies this right.
• FTX has also filed a complaint in Wilmington, Delaware, bankruptcy court seeking back $700 million transferred to K5 entities in 2022.
Media Houses Appeal Court Decision on Redacting FTX User Names
Several major media outlets have filed an appeal aiming to overturn a bankruptcy court’s decision to redact the names of FTX users permanently. In a recent filing with the US Bankruptcy Court for the District of Delaware, The New York Times, Dow Jones & Company, Bloomberg, and the Financial Times argued that there is a “presumptive right” for the public to inspect bankruptcy filings and that keeping the names concealed effectively denies that right.
Previous Motions Filed by Media Companies
The media houses previously filed a motion to have the names of FTX creditors unsealed in December 2022, but Bankruptcy Court Judge John Dorsey ruled to keep the customer names sealed for three months. When the media companies again filed an objection to the redaction decision in May 2023, Judge Dorsey sided with FTX once more, prioritizing creditors’ safety and ordering FTX to “permanently redact” the names of its customers.
Third Attempt by Media Houses
Now, the media houses are making a third attempt to have the names of FTX creditors disclosed, with lawyers representing the firms arguing that FTX is not entitled to an exception to disclosure requirements simply because its customers used cryptocurrency. In his latest ruling, Judge Dorsey claimed that publishing individual customer names could put them at risk of scams and identity theft.
Customer Safety At Core Of Issue
“It is customers who are most important issue in this case,” he said. “We want make sure they are protected and they don’t fall victim any types scams.” The court also granted permission FTX remove name companies institutional investors from customer lists temporarily; exchange will have make another request 90 days if it wants keep them redacted.
FTX Seeks To Recover Funds Transferred By Bankman-Fried To Investment Firms
Last week, FTX filed complaint Wilmington , Delaware , bankruptcy court , asking back $700 million founder Sam Bankman-Fried transferred K5 entities 2022 . Exchange claimed Bankman-Fried was “profligate patron” who sent millions K5 Global well affiliated entities K5 Global co – owners Michael Kives Bryan Baum after attended social event hosted Kives 2022 .FTX sought return funds , describing transfers being carried out “without recoupment value” benefit company or shareholders.