FTX allowed to remove customer names from bankruptcy filings.
FTX, a bankrupt cryptocurrency exchange, has been granted permission by a US Bankruptcy Judge, John Dorsey, to remove the names of its customers from all filings in its bankruptcy case. The judge has concluded that publishing the names of individual customers could put them at risk of scams and identity theft. The court has also granted permission to FTX to completely redact the names of all customers from its bankruptcy filings permanently, with the priority being customer safety and ensuring they don’t fall victim to any types of scams. FTX will have to make another request in 90 days if it wants to keep the names of companies and institutional investors redacted. The FTX bankruptcy case has been complicated by a long-standing dispute between the exchange’s US bankruptcy team and liquidators overseeing the shut-down of FTX’s Bahamian affiliate, FTX Digital Markets.
On Friday, the judge asked both sides to seek mediation and cooperate to prevent inconsistent rulings in separate court proceedings in the US and the Bahamas. Dorsey rejected the request made by the Bahamian liquidators to start litigation in the Bahamas courts over assets held by the US debtors. He also said he would not expect a Bahamian court to follow his orders.
FTX Bankers Consider Selling Stake in AI Company Anthropic
Bankers of FTX are looking to offload their stake in AI startup, Anthropic. Perella Weinberg, the boutique bank overseeing FTX’s bankruptcy proceedings, is reportedly discussing the potential sale of Anthropic’s stake with interested parties. FTX owned as much as $500 million worth of shares in Anthropic when it filed for bankruptcy last year, and the sale of the stake is expected to fetch a nine-figure sum, which would be distributed to former FTX customers. FTX and its group of crypto companies filed for Chapter 11 bankruptcy in early November. Sam Bankman-Fried, the disgraced founder of FTX, was later arrested in The Bahamas after US prosecutors formally filed criminal charges against him. He was eventually extradited to the US, where he was released from jail after posting a $250m bond in a New York court. Bankman-Fried is currently awaiting trial, which is scheduled for October.
