Media to keep customer's names secret in bankruptcy: 'keep the lights on'

The media has maintained that in most cases, bankrupt businesses are required to reveal the names and amounts owed to their creditors. Dorsey decided to keep the names a secret because he wanted to make sure that the customers are safe and don't fall for scams. This is consistent with the bankruptcy law exception that addresses the possibility of identity theft or other harm. The media outlets have previously voiced their opposition to the sealing of the customer's names.

In The Ftx Lawsuit, Customers' Names Are Protected By Law

In the previous filing, it was argued that the list does not qualify as "confidential commercial information" and that disclosing the names would not put creditors at "undue risk." Irina Heaver, a crypto lawyer based in Dubai, said that the Judge's decision to "allow stablecoin to keep customer names confidential" was wise. Heaver gave the "Celsius case" as an illustration, which in July 2022 resulted in "a surge in phishing attacks." Following the company's announcement that certain customer data had been compromised, Celsius depositors were sent an email with a warning. A list of emails that an internal employee had given to a bad actor from outside the company led to the breach.