The judge presiding over the bankruptcy of cryptocurrency exchange FTX Trading is allowing the company to maintain a veil of secrecy over the names of individual customers and creditors.
FTX founder, Sam Bankman-Fried was released on a $250M bond and is under house arrest at his parents' home in California. LiveNOW from FOX's Josh Breslow spoke with Aaron Kaplan, a securities attorney, about the latest on the case.The judge presiding over the bankruptcy of cryptocurrency exchange FTX Trading is allowing the company to maintain a veil of secrecy over the names of its customers and creditors.
Dorsey said he would hold a status conference on Jan. 20 on whether FTX can segregate the names of individual creditors who are not customers from creditors who also are customers. In an effort to avoid litigation, FTX, along with its official committee of unsecured creditors, asked Dorsey for permission to keep the names of individual customers and addresses of institutional customers secret only for the next six months, subject to their rights to seek an extension.
"We have very little information. This is the opposite of a fishbowl," said Juliet Sarkessian, referring to an earlier statement from FTX attorney Andrew Dietderich that the company welcomes the fact that "Chapter 11 is a fishbowl.
"Mr. Wang created this back door by inserting a single number into millions of lines of codes for the exchange, creating a line of credit from customers to Alameda to which customers did not consent," Dietderich said, adding that the line of credit amounted to $65 billion. According to the list, NFL quarterback Tom Brady owns more than 1.1 million common shares of FTX Trading, while his ex-wife, Gisele Bündchen, owns more than 686,750 shares. Brady and Bündchen are among several celebrity endorsers of FTX who have been named as defendants in a proposed class-action lawsuit filed in Florida on behalf of FTX customers.
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