FTX has received permission to edit the names of clients in the documents used in its bankruptcy case.

The Federal Court at the end of last week agreed with the arguments of the crashed cryptocurrency exchange that the disclosure of customer names is a potential threat since in this case there is a risk of theft of their personal data for subsequent use as part of the implementation of fraudulent schemes.

Judge Jack Dorsey stated that in the context of this proceeding, the most important issue is the position of the clients. He noted that the court wants to make sure that people who interacted with the bankrupt cryptocurrency exchange are protected and will not suffer as a result of the actions of scammers.

In December, the clients appealed to the court, stating that their desire to prevent confidential information from going beyond the category of data protected by the right of secrecy is more important than the public interest in the bankruptcy case. Their lawsuit claims that the arguments in favor of hiding and editing information about thousands of people are as convincing as possible. The clients of the bankrupt crypto exchange have lost their funds and would not like their personal history of using cryptocurrency to become public.

In January, Jack Dorsey allowed FTX to keep in secret for three months the names of clients belonging to 1 million creditors the number of which is a clear indication of the large scale of the bankruptcy case.

The crypto exchange declared bankruptcy at the end of 2022. This happened after the sale of assets, which led to the collapse of FTX. The founder of the company, Sam Bankman-Fried, became involved in several criminal cases. He was charged with the bankruptcy of the crypto exchange. Over the past few weeks, Sam Bankman-Fried has filed two lawsuits, each of which is an attempt to prove innocence.

In one of the lawsuits, the defense team of the crypto exchange founder claims that the federal government formulated erroneous accusations in a hurry.

Sam Bankman-Fried was initially charged with eight felonies, including electronic fraud, conspiracy to launder money, and another conspiracy to circumvent the campaign finance law.

After being extradited to the United States from the Bahamas, the founder of the crypto exchange was charged with new charges. The lawyers argue that due to the absence of these charges in the original extradition agreement, they should be dropped.

Also, the team of Sam Bankman-Fried filed a motion at the end of May, which contains allegations that the founder of the crypto exchange did not follow the advice of his law firm Fenwick & West, but did not knowingly violate the law.