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Mainstream media renew push for non-US FTX user identities

May 4, 2023No Comments

Four news outlets in the United States have continued efforts to reveal the identities of FTX clients outside of the US, filing new objections to an earlier motion to seal their identities.

Bloomberg, Dow Jones, The New York Times and The Financial Times first filed a motion objecting to FTX and the Official Committee of Unsecured Creditors being authorized to redact and retain customer information it's january 11

While the court had previously heard similar arguments from the four companies, on May 3 presentation made a new objection to the Committee's motion to seal the identities of non-US clients.

The most recent filing by the four media firms against FTX and the Committee. Source: Kroll.

The latest argument from the news outlet is that there is no legal basis for redacting names under data privacy laws outside of the US.

The media giants argued that under section 105 of the Bankruptcy Code, the provision that grants judicial power to the bankruptcy court, there is no party that allows foreign law to override the right of access to information under constitutional law. and US Statutory:

Ultimately, the Petitioners want to avoid โ€œthe application of the public disclosure requirements of US bankruptcy law. [...] it provides no basis for sealing.โ€

โ€œUnited States law, constitutional and statutory, guarantees the public a strong presumptive right to inspect bankruptcy filings. That right cannot be derogated from by a party's assertion of legal obligations under foreign law," the media firms added.

The first argument raised, which was claimed in a previous filing โ€” was that the names of FTX's creditors do not constitute "confidential business information."

The second, also raised in a previous filing, is that such disclosure would not expose creditors to "undue risk."

Related: FTX Has Recovered $7.3B In Assets, Will Consider Rebooting Exchange

FTX and the Committee have until May 4 at 4:00 pm Eastern Time (ET) to file an objection.

The hearing date for the submission will be May 17 at 1:00 pm ET.

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