DOVER, Del. — The names of individual customers of collapsed cryptocurrency exchange FTX Trading can be permanently shielded from public disclosure, a Delaware bankruptcy judge ruled Friday.
Following a two-day hearing, Judge John Dorsey rejected arguments from lawyers for several media outlets and for the U.S. bankruptcy trustee, which serves as a government watchdog in Chapter 11 reorganization cases, challenging FTX’s request to keep the names of customers and creditors secret.
Dorsey ruled that customer identities constitute a trade secret. He also said FTX customers need to be protected from bad actors who might target them by scouring the internet and the “dark web” for their personal information.
“It’s the customers that are the most important issue here,” he said. “I want to make sure that they are protected and they don’t fall victim to any types of scams that might be happening out there.”
Katie Townsend, an attorney for the media outlets, had argued that the press and the public have a “compelling and legitimate interest” in knowing the names of those affected by the stunning collapse of FTX.
“That collapse sent shock waves not just through the cryptocurrency industry, but the entire financial industry,” Townsend said. “And at
