FTX Customers Want to Keep Their Identities Private

• Non-US FTX customers want to keep their identities private.
• Bahamas regulator holding FTX assets on a temporary basis.
• The FTX founder visited White House officials in 2022.

Non-US FTX customers have requested the US bankruptcy judge to keep their identities private in the ongoing chapter 11 bankruptcy case of FTX. They say that revealing their names might expose their identity to targeted cyber attacks and other crypto scams.

As per December 28th joinder filing, “Requiring the Debtors to disclose the FTX.com customer’s names and other identifying information to the general public would cause irreparable harm, further victimizing the FTX.com customers whose assets were misappropriated.”

On December 29th, The Wall Street Journal (WSJ) journalist Andrew Scurria highlighted, “Bankruptcy courts normally require transparency into the affairs of troubled businesses, including their creditors, in return for the protections of chapter 11.” 

Some cyber attackers are exploiting the current situation of the crypto market to steal funds from the FTX platform. They are targeting the victims as government officials to scam their money.

Recently the Oregon Division of Financial Regulation alerted crypto users about fake crypto apps and websites that were being used to steal users’ funds.

It warned on the official website that “In a recent scam involving a website claiming to be managed by the US Department of State, stating it was working to get FTX customer assets returned to them, following the collapse of FTX. The website asked for the investor’s FTX username and password, along with other account information.”

Bahamas regulator holds FTX assets of nearly $3.5 billion

On December 29th, the Bahamas Securities Commission said that the firm will hold FTX funds of nearly $3.5 billion based on the latest market prices. The regulator said that they are holding the money temporarily. The commission said former FTX CEO Sam Bankman-Fried and Gary Wang no longer have access to the frozen assets.

Christina Rolle, the commission’s CEO, said, “All transferred assets were and remain under the sole control of the commission.”

Earlier, leading credit investment firms are trying to purchase claims from FTX’s users. Apollo Global Management and Attestor are in the race to buy claims. Niche investment firm 507 Capital recently bought several claims from hedge funds.

SBF met with US officials before FTX collapse

Ever since the FTX bankruptcy case, severely damning revelations about the erstwhile second-largest cryptocurrency have surfaced. Recently, the White House posted visitor logs; in that report, former FTX CEO Steve Ricchetti, currently serving as the Counselor to the President, on April 22nd and May 12th; and on May 13th he met policy adviser Charlotte Butash.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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