Disgraced FTX founder Sam Bankman-Fried is now facing 13 charges related to the collapse of his cryptocurrency empire. He has pleaded not guilty to all charges.
The names of the customers who used the site since collapsed. FTX cryptocurrency exchange it can remain secret permanently, a bankruptcy judge in Delaware ruled Friday.
Several news outlets, arguing that there is a "compelling and legitimate interest" in the names, and the US bankruptcy trustee challenged FTX's request to keep client names out of public view.
Judge John Dorsey ruled that the identities of FTX customers are a "trade secret."
"Customers are the most important issue here," Dorsey said. "I want to make sure they're protected and that they don't fall victim to any kind of scam that may be going on."
FTX filed for bankruptcy in November. (AP Photo/Marta Lavandier, File/AP Press Room)
Dorsey said scammers could steal customers' personal information if their identities were revealed.
Brian Glueckstein, who represented FTX, also argued that "debtors are in a position to derive value from these client lists," adding that the client list is a valuable asset to the organization.
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But Dorsey said the names of UK and European Union creditors or shareholders (and covered by a consumer protection program known as the General Data Protection Regulation) may be released, saying there is no evidence they are seen. harmed by a disclosure.
This illustrative photo shows a smartphone screen displaying the logo for FTX, a former cryptocurrency exchange. (Olivier Douliery /AFP via Getty Images, File / Getty Images)
Kate Townsend, who represented the media, had argued that FTX's collapse last year "sent shockwaves through not just the cryptocurrency industry, but the entire financial industry. And at this point, neither We don't even know where the shock waves, both individually and institutionally, have been hit the hardest, and which institutions may have the most exposure, or none at all, as a result."
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Dorsey had previously ruled in January that FTX could remove customer information from court documents for 90 days.
FTX filed for bankruptcy last November and its founder, Sam Bankman-Fried, has been accused by federal prosecutors of misleading FTX investors and lenders, and stealing billions of dollars in client funds.
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He has pleaded not guilty to 13 federal charges and remains under house arrest at his parents' California home on $250 million bail until his trial, which is scheduled for October.
Breck Dumas and Landon Mion of Fox Business and the Associated Press contributed to this report.
