- Media Houses Appeal to Overturn Court Redaction Decision: Major media outlets have filed an appeal to overturn a bankruptcy court decision to redact the names of FTX users permanently.
- Court Prioritizes Creditor Safety: Bankruptcy Court Judge John Dorsey ruled that publishing customer names could put them at risk of scams and identity theft, so he ordered FTX to “permanently redact” the names.
- FTX Seeks Recovery of Funds: FTX has filed a complaint in Wilmington, Delaware, bankruptcy court asking back $700 million its founder Sam Bankman-Fried transferred to K5 entities in 2022.
Media Houses Appeal to Overturn Court Redaction Decision
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. 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. 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 the disclosure requirements simply because its customers used cryptocurrency.
Court Prioritizes Creditor Safety
In his latest ruling, Judge Dorsey claimed that publishing the names of individual customers could put them at risk of scams and identity theft. Dorsey made it clear that FTX should prioritize customer safety and make sure they don’t fall victim