Knauth reports, “Their attorneys have argued that FTX is not entitled to a ‘novel and sweeping exception’ to bankruptcy’s typical disclosure requirements simply because its customers used cryptocurrency.
“FTX has argued that cryptocurrency users face heightened risk of scams and identity theft and pointed to the recent bankruptcy of crypto lender Celsius Network to show what kinds of scams can result when customers’ names are revealed.
“After the judge in the Celsius case ordered customers’ names be revealed, Celsius users saw an increase in phishing attacks from scammers who posed as bankruptcy attorneys and Celsius employees, according to FTX’s court filings.”
Read more here.
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