Creditors of cryptocurrency lenders BlockFi have pleaded to keep their personal information private in court documents.
Revealing their names as part of bankruptcy proceedings could put them at risk Identity theft or hackingThey claim.
The strange request is the result of a similar incident involving someone else cryptocurrency lender, Celsiusin which the financial information of tens of thousands of users was released as part of the usual legal process.
In a separate filing with the New Jersey Bankruptcy Court, Andrew Varaa bankruptcy official at the US Department of Justice argued with this disclosure, which he had previously asserted in the deceased’s case cryptocurrency Exchange FTXis “a basic requirement of bankruptcy law” and required to avoid any suggestion of improper conduct.
However, the possible repercussions of making their private information public are worrying BlockFi’s creditors.
according to a Committee of BlockFi CreditorsGiving away a priceless customer list for free would lower the value of the estate and make it more vulnerable to theft.
They used the example of experienced Bitcoin BTC/USD Developers like Luke Dashr who have been the target of attacks in the past.
Creditors argue that by keeping their personal information secret, they can better defend themselves against threats.
Judge Michael Kaplan will hear arguments on the request for disclosure of the list of creditors in the FTX case on January 11, and the judge is scheduled to hear arguments in the BlockFi case on January 17.
To better protect themselves from potential dangers, BlockFi’s creditors are hoping that their case will be treated differently from those of Celsius and FTX and that their personal information will be kept private.
Next: Metropolitan Bank Announces Complete Exit From Crypto Asset Industry: What It Means For Clients
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