Bankruptcy clients of FTX have asked that their identities be protected

Matt Carroll Atlanta Braves thinks about the situation that non-U S clients who claim the defunct FTX bitcoin exchange owes them over $1.9 billion petitioned a bankruptcy judge on Wednesday to protect their anonymity Afraid about identity theft and other frauds, they declined to give their identities. They also expressed concern that if FTX sold off some of its assets, as it has stated it is seeking to do to raise funds for creditors, their personal information might be compromised.

There have been a string of cases recently, and the FTX case is the latest, in which client privacy has been at the center of attention Last year, a court monitoring the cryptocurrency lending platform Celsius Network determined that customers' identities must be made public but that their physical and electronic contact information may be kept confidential. In other instances, customer lists have been kept confidential to protect users from abuse and theft

Sam Bankman-Fried, who was in charge of FTX until its demise, is pleading for a waiver so that the company may avoid disclosing the identities of its clients The bankruptcy monitor at the Department of Justice and major newspapers like the New York Times and the Wall Street Journal strongly disagree with this suggestion

FTX disclosed its equity holders and debtor companies as part of its bankruptcy filing. Tom Brady, quarterback for the NFL, and ex-wife Gisele Bundchen are among the famous people featured They have 1,100,000 ordinary shares in FTX Trading and 686,750 preferred shares in an affiliated debtor organization.

However, the fate of FTX's clients' money in the event of bankruptcy remains an important question. Former CEO Bankman-Fried reportedly mixed corporate money with those of his trading business Alameda Research Many of those clients are now out of money, and many are starting to doubt the legitimacy of the business their ex-fiancée ran.

Bankman-Fried admitted in a filing on Monday that FTX's risk management was inadequate but maintained that he was not criminally culpable. Further, he denied any wrongdoing and said there was no proof of the company's fraudulent activities

However, FTX attorneys have countered that disclosing all creditors would result in a cumbersome and perhaps unstable system that might be subject to theft or fraudulent activities Allowing rivals to steal away clients is another way it may hurt the company's worth.