FTX has received court approval to remove client names involved in the bankruptcy case from all litigation files.
The other day, a US judge ruled in favor of FTX in the bankruptcy case. Struggling with legal processes, FTX requested the court to remove the names of its customers from the case files. U.S. Bankruptcy Judge John Dorsey found this request reasonable and has justifiably removed the names of FTX clients from the proceedings.
The names of FTX clients will not be disclosed in the US Bankruptcy Court.
FTX’s Clients Names Will Be Removed From Litigation Files
U.S. Bankruptcy Judge John Dorsey ruled that FTX’s individual client names be removed from its bankruptcy filings. Judge Dorsey said that as the reason for this decision, the most important issue is customer safety.
Dorsey reviewed the process on client names at FTX’s request. The judge stated that it could be risky to have clients’ names included in the case file and displayed in legal proceedings. According to Dorsey, otherwise people could risk fraud and identity theft.
FTX, which plans to restructure and restart its services, is also taking positive steps in the bankruptcy process. The stock market, which made a request to the court about its customers, took a decision in its favor. Dorsey said they want to make sure customers don’t fall victim to any scams.
Previously, the court had given a 3-month confidentiality order on customer names. The decision of the court the other day was that the names of the customers remain confidential throughout the trial.
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