FTX Creditors Lauds Former US Secret Service Agent In Bankruptcy Case

FTX Debtors and the Official Committee Of Unsecured Creditors filed a motion in the court to redact or withhold confidential information and personal details of FTX creditors in any court filings related to the bankruptcy case. Former US Secret Service Agent Jeremy A. Sheridan supported anonymity for creditors citing risks of identity theft or unlawful injury.

FTX Debtors and Creditors Filed Motion To Keep Names Anonymous

According to a court filing dated April 20, FTX and the Official Committee of Unsecured Creditors submitted a motion in the U.S. Bankruptcy Court for the District of Delaware. The motion aims to redact and withhold the names, addresses, and e-mail addresses of any creditors or entity.

The Debtors and Committee believe the names of customers who are natural persons should be kept private to protect them from potential harm caused by scams and other threats. The Court has already ordered that customers’ email and physical addresses be sealed.

Former US Secret Service Agent Jeremy A. Sheridan, who is managing director of FTI Consulting Inc, filed a declaration in support of the motion. FTI Consulting is the financial adviser for the Official Committee of Unsecured Creditors.

Sheridan asserts identifying FTX customers imposes a severe and unusual risk of identity theft, asset theft, personal attack, and further online victimization.

The US Trustee and media companies, including Bloomberg, claimed to make the names of FTX customers public, arguing that it would help identify if the individuals are creditors in any other bankruptcy case. However, the Bankruptcy Code authorizes a court to protect an individual’s details as it may lead to identity theft or unlawful harm.

Meanwhile, Tribe Capital mulling a fresh capital injection of $250 million to restart the crypto exchange FTX. The committee of unsecured creditors announced to begin work with the debtors to analyze all of the potential options to either reboot or sell the exchanges.

Also Read: Banks, VCs, Pension Funds Once Crypto-Friendly Steering Away From Crypto

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