BlockFi Creditors Request Privacy in Bankruptcy Proceedings to Prevent Hacks and Identity Theft
WHAT YOU SHOULD KNOW
- Creditors of BlockFi have requested that their personal information remain confidential in court documents due to concerns of identity theft or hacking.
- Andrew Vara, an official from the U.S. Department of Justice, has submitted a document to the New Jersey bankruptcy court arguing that disclosure is a fundamental part of bankruptcy law.
Creditors of BlockFi, a lender of cryptocurrency, have requested that their personal information remain confidential in court documents.
The individuals involved in the bankruptcy proceedings have expressed concerns that revealing their names could make them vulnerable to identity theft or hacking.
Due to a similar incident in which numerous Celsius users’ financial data was revealed during regular legal proceedings, an unusual request has been made.
Andrew Vara, an official from the U.S. Department of Justice responsible for bankruptcy cases, has submitted a document to the New Jersey bankruptcy court. In it, he argued that disclosure is a fundamental part of bankruptcy law, and must be done in order to prevent any potential accusations of misconduct. This was an idea he had previously expressed in the case of the now-defunct FTX cryptocurrency exchange.
The potential consequences of having their confidential data exposed are a concern for BlockFi’s lenders.
A committee of BlockFi creditors has determined that distributing a priceless client list without compensation would reduce the estate’s value and make it more vulnerable to theft.
Luke Dashr is an example of an experienced Bitcoin developer who has been the victim of attacks in the past. His experience serves as a cautionary tale for other developers in the cryptocurrency space.
Creditors contend that maintaining their confidential data will give them greater protection against potential threats.
Judge Michael Kaplan is set to preside over the hearing on the motion to make the creditor list in the FTX case public on January 11.
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