Four major media outlets have opposed the decision to seal the names of individual customers of FTX, a cryptocurrency exchange, arguing that bankrupt companies are usually obligated to disclose the names and amounts owed to their creditors. However, Judge Dorsey ruled in favor of FTX on June 9, granting them permission to “permanently redact” customer names from all filings for their safety.
The media outlets have appealed this decision, stating that FTX is not entitled to a “novel and sweeping exception” simply because its customers used cryptocurrency. Despite this, Dubai-based crypto lawyer Irina Heaver supported Judge Dorsey’s ruling, applauding it for protecting customer identities and preventing potential scams or identity theft. She also cited the “Celsius case” as an example of the harm that can be caused by such disclosure, which led to a surge in phishing attacks in July 2022.