FTX bankruptcy judge to hear media companies' request to reveal customer names

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A group of media companies is set to argue to the U.S. judge overseeing the FTX bankruptcy that they should be allowed to request that the collapsed crypto exchange make public the names of its customers

, Dow Jones, Bloomberg and the Financial Times said bankruptcy law demands transparency. Letting customer names remain secret could turn bankruptcy proceedings into a "farce" if creditors start fighting anonymously over how much money they should get, the media companies wrote in a Delaware bankruptcy court filing.

FTX has argued the usual U.S. bankruptcy practice of disclosing names, addresses and email addresses of creditors, which includes customers, could expose them to scams and could violate privacy laws for those who live in Europe. The company has also said that disclosing identities of as many as 1 million customers would make it easier for a competitor to poach them, undermining the value of FTX's platform when it is looking for buyers.

The U.S. Trustee, part of the U.S. Department of Justice, has already objected to FTX's request and argued that transparency helps protect against impropriety in bankruptcy cases.Friday's bankruptcy hearing comes at the end of a dramatic week for the crypto exchange. Founder Sam Bankman-Fried was arrested on

 

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