Lawyers for beleaguered crypto exchange FTX did not object to media arguing in the firm’s bankruptcy case, taking a step toward potentially identifying customers tied up in the collapse.
Media outlets including The New York Times and Bloomberg recently filed a motion in the FTX case to make creditor information public, citing public interest. Lawyers for FTX, however, want to keep the creditor list private. A federal judge moved to keep FTX creditors anonymous on a temporary basis in November.
Both parties appeared before a Delaware bankruptcy court judge Friday morning to hash out how the court would handle the disagreement. FTX has more than 100,000 creditors, and the top 50 could be owed $3.1 billion.
“We are already starting a process of names dribbling out,” said David Finger, the attorney representing media outlets seeking to intervene in the case. “The names are going to come out eventually.”
The next hearing on that matter in the bankruptcy case is set for Jan. 11.
Lawyers for FTX also said they no longer wished to keep an indemnification and exculpatory motion under seal. They previously asked the court to keep a motion under seal because the firm worried it would reveal some details of their asset recovery efforts. Assets worth hundreds of millions of dollars were transferred from FTX the night the firm filed for bankruptcy. Now, lawyers say FTX has made progress in the recovery and they are comfortable with unsealing the motion.
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