Delaware Bankruptcy Judge Protects FTX Users’ Privacy for 3 Months

• A Delaware bankruptcy judge ruled that the names of creditors for FTX can remain sealed for at least another three months.
• The ruling was made to protect the privacy of potentially 9 million users of the crypto exchange.
• Judge John Dorsey indicated that he may change his mind after three months and review the issue.

A Delaware bankruptcy judge has ruled that the names of creditors for FTX can remain sealed for at least another three months, in order to protect the privacy of potentially 9 million users of the crypto exchange. The ruling was made by Judge John Dorsey at a hearing on Wednesday, after media organizations and the U.S. government had made a bid to keep the legal process transparent.

Attorney Brian Glueckstein, representing FTX, told the court that they wanted to redact sensitive personal information of customers and other stakeholders, as well as protect the value in the debtors customer list as an asset. The company had argued that publishing the names of the users could endanger their privacy. In response, Judge Dorsey stated that he was “reluctant at this point to say I’m going to require the disclosure,” and allowed the lists to remain sealed.

However, Dorsey did indicate that he may change his mind after three months and review the issue. He urged both sides to come to an agreement on the matter, and if not, there will be a hearing to decide the fate of the creditor names. In the meantime, the names will remain sealed, providing some relief to those users who were concerned about their privacy.

John J. Ray III, CEO of FTX, had stated that he was grateful for the judge’s decision. He commented that the company had always been committed to protecting their users’ privacy, and that the ruling had allowed them to do just that. He also added that he hoped both sides could come to an agreement soon that would benefit everyone involved.

In conclusion, while the names of the creditors of FTX will remain sealed for the time being, it remains to be seen what the ultimate outcome of this dispute will be. For now, the company and its users can rest assured that their privacy is being protected, and the judge will review the issue in the near future.