After the collapse of crypto exchange FTX, CEO Sam Bankman-Fried faces court in the US on fraud allegations. Some of the foreign customers of the crypto exchange are now asking the court for anonymity. The reasons.
A group of overseas customers of bankrupt crypto exchange FTX has asked a US court to keep their names secret, contrary to standard bankruptcy practice.
"Holders of cryptocurrencies are particularly vulnerable to fraud and theft," said a letter to Judge John Dorsey filed Thursday night.
The reason is that crypto flows are harder to track and there are “fewer safeguards to protect assets.” FTX has also asked for an exception.
The US Department of Justice and media such as the New York Times and the Wall Street Journal, on the other hand, are demanding disclosure.Dorsey has scheduled a hearing on the issue for January 11th.
FTX filed for bankruptcy protection on Nov. 11 after clients withdrew funds en masse in response to the covert move of $10 billion in deposits.
Founder and CEO Sam Bankman-Fried resigned as boss the same day. He is on trial in the US over fraud allegations, which he denies. The collapse of FTX has rocked the crypto world.