May 05, 2023 12:25
Four top media firms including
Bloomberg L.P. have rejected the latest move by FTX debtors and creditors to
extend a 90-day redaction window that granted them permission to hide details
of customer-creditors of the bankrupt crypto exchange in
certain filings.
Bloomberg, Others Criticize FTX Secrecy
The media giants, which also
includes Dow Jones, The New York Times and The Financial Times, in a court filing on Thursday asked the US Bankruptcy Court in Delaware to reject their move and sanction the release of the details of nine million FTX
customers-creditors.
On January 20, the court had given the FTX debtors a 90-day window to redact the names of all customers and the
addresses and email address of customers who are not natural persons. The court
also gave permission to hide the names and addresses of 'any creditors or
equity holders' who are natural persons and are protected by the General Data
Protection Regulation (GDPR), the law that protects the privacy and personal data of EU citizens.
However, in March, the Ad
Hoc Committee of Non-US Creditors of FTX filed a motion to redact the names of its
members in certain filings, a proposition the media giants rejected in
April, noting that the request was “substantially
identical” to those initiated by the FTX debtors.
Furthermore, on April 20, FTX
debtors and creditors filed a motion to extend the redaction period for an
additional 90 days. They also asked the court to permanently seal the names of
FTX’s individual customer-creditors in accordance with US and non-US
privacy laws.
However, Bloomberg and the other
media organizations in the court filing argued that the FTX debtors and
creditors provided no evidence to support their argument for redaction. They
also contended that that there is no basis to claim that the names of FTX’s customer-creditors
constitute confidential commercial information.
Furthermore, they also maintained that existing record does not establish that disclosing the names will subject them to an “undue risk” of identity
theft or other unlawful injury. Additionally, they claim that
there is no legal basis for hiding the names of individual creditors pursuant to foreign data privacy laws.
According to the court filing, the
hearing date for the case is May 17, 2023.
FTX Continues Asset Recovery Efforts
FTX, which was founded by Samuel
Bankman-Fried, collapsed in November following a withdrawal frenzy
and discovery of intermingling of funds between the exchange and sister crypto hedge fund, Alameda
Research. The failed exchange filed for Chapter 11 bankruptcy protection last year and has been making efforts to
recover its assets.
Finance Magnates reported that the exchange, which is
fighting to revive its business, has been able to recover $7.3 billion in liquid digital assets and cash.
JUST IN: Bankrupt FTX has recovered $7.3 billion in assets and is considering relaunching the exchange in Q2.
— Watcher.Guru (@WatcherGuru)
April 12, 2023Meanwhile, in a new court filing processed on Wednesday,
FTX is also seeking to recoup about $4 billion from bankrupt crypto lender Genesis, claiming that the latter was “largely repaid”
about $8 billion in loans given to Alameda Research. FTX claims that Genesis received "avoidable transfers" in the 90-day period before the exchange filed for bankruptcy protection.
The exchange further noted that Genesis “was one of the main feeder funds for FTX” and was “instrumental
to its fraudulent business model.”
FTX moves to claw back $3.9 billion from Genesis.1. $2.1 billion loan repayments/collateral pledge2. $1.8 billion FTX exchange withdrawals pic.twitter.com/1SsW8yoPck
— FTX 2.0 shareholder (in spe) (@AFTXcreditor)
May 3, 2023FCA on whistleblower; Equinix's Q1 results; read today's news nuggets here.
This article was written by Solomon Oladipupo at www.financemagnates.com.
World Crypto Global
