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BlockFi Creditors Battle to Keep Their Details Secret
The legal tussle mirrors those already held for collapsed crypto lender Celsius and the FTX exchange.
BlockFi creditors are seeking to keep their personal details secret, arguing in a Tuesday court filing that they will be at risk of hacks or identity theft if their names are revealed as part of bankruptcy proceedings.
Creditors of the bankrupt crypto lender are seeking to avoid a situation seen in the case of Celsius Network – where the financial details of hundreds of thousands of users were published as part of standard judicial procedure.
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Andrew Vara, a U.S. Department of Justice official responsible for bankruptcy cases, argued in a separate Tuesday filing to the New Jersey bankruptcy court that “disclosure is a basic premise of bankruptcy law” needed to avoid any suggestion of impropriety – echoing arguments he has previously made in the case of collapsed crypto exchange FTX.
A committee of BlockFi creditors said that giving away a valuable client list for free would reduce the value of the estate – and that publication would make clients vulnerable to theft, noting that even experienced Bitcoin developers such as Luke Dashr can be the subject of hacks.
In the case of FTX, the motion to publish the creditor list – which has been supported by media companies including Bloomberg and the New York Times – will be considered at a court hearing in Delaware later on Wednesday, Jan. 11. Judge Michael Kaplan is set to consider the BlockFi case at a Jan. 17 hearing.
Read more: Why Celsius Doxxed Hundreds of Thousands of Users
Jack Schickler
Jack Schickler was a CoinDesk reporter focused on crypto regulations, based in Brussels, Belgium. He previously wrote about financial regulation for news site MLex, before which he was a speechwriter and policy analyst at the European Commission and the U.K. Treasury. He doesn’t own any crypto.
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Crypto Industry Asks President Trump to Stop JPMorgan’s 'Punitive Tax' on Data Access
A coalition of fintech and crypto trade groups is urging the White House to defend open banking and stop JPMorgan from charging fees to access customer data.
What to know:
- Ten major fintech and crypto trade associations have urged President Trump to stop big banks from imposing fees that could hinder innovation and competition.
- JPMorgan's plan to charge for access to consumer banking data may debank millions and threaten the adoption of stablecoins and self-custody wallets.
- The CFPB's open banking rule, which mandates free consumer access to bank data, is under threat as banks have sued to block it, and the CFPB has requested its vacatur.
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