Ex-White House Cop Protects FTX Creditor Anonymity

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Ex-Secret Service Agent Backs FTX Creditor Anonymity Amid Investor Woes
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Former U.S. Secret Service agent Jeremy A. Sheridan says that the identities of FTX creditors should be protected to help them avoid being scammed again.

The former elite cop representing an FTX committee of unsecured creditors said anonymity is crucial to preventing identity theft and online victimization.

FTX Creditors Should Not be Scam Fodder, Argues Sheridan

Sheridan filed papers pursuant to creditors’ anonymity on April 20. This filing came after a U.S. judge agreed to protect the names of FTX’s 50 biggest creditors amid the company’s Chapter 11 proceedings in the U.S. American Bankruptcy Code requires the public listing of creditor names.

However, Sheridan argues that exposing these large crypto holders would make them a target of scammers. Large institutional investors are also facing scrutiny for not performing adequate due diligence on the collapsed Bahamian exchange.

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FTX filed for bankruptcy in November 2022 after negative press around its FTT token caused a flurry of withdrawals and accelerated its insolvency. The firm intends to file a plan detailing a path out of bankruptcy by July 2023. Press reports around the restarting of the exchange surfaced earlier this month.

Big Investors Put Losses Behind Them

The Ontario Teachers Pension Plan, which wrote off its $95 million in FTX, announced it would avoid further crypto investments. The $190 billion fund invested in FTX in 2021 and 2022.

“We took our time and did a lot of due diligence on the business. It didn’t turn out the way we thought,” OTTP chief Jo Taylor told the Financial Times. He added that despite thorough due diligence, the withholding of certain data compromised the fund’s ability to make a more objective decision.

Web3 firm Coral said that it had to take drastic measures to survive after losing $14.5 million when FTX collapsed. Despite the shortage of funds, the firm launched xNFT, a new protocol to tokenize code. The new protocol enabled a curated app store within Coral’s new Backpack wallet.

FTX’s bankruptcy estate recovered $7.3 billion for creditors on April 12.

For Be[In] Crypto’s latest Bitcoin (BTC) analysis, click here.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.



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