LONDON (Bywire News) - The US Department of Justice has appointed a nine-member committee to represent creditors in the bankruptcy case of crypto exchange FTX. The committee, which includes individual account holders, investment funds, and an affiliate of US crypto firm Genesis, will represent the interests of all unsecured creditors in the case.
FTX filed for bankruptcy protection in Delaware in November, citing a sudden withdrawal of $6 billion in customer funds and Binance’s abandonment of a rescue deal. The collapse has left an estimated 1 million creditors facing losses totaling billions of dollars.
At a Wednesday court hearing, US Bankruptcy Judge John Dorsey said he expects the creditors’ committee to weigh in on issues related to customer privacy at a hearing scheduled in early January. FTX has argued that customer names should be kept secret to protect them from scams and to preserve the business value of FTX’s customer list for potential buyers.
The committee members include three individual creditors, Genesis affiliate GGC International Ltd, crypto trader Wintermute Asia PTE, Coincident Capital International, Pulsar Global Ltd, Octopus Information Ltd and Wincent Investment Fund. The Justice Department and a group of media organizations are attempting to block FTX from straying too far from the transparency requirements of bankruptcy proceedings.
(Reporting by Dietrich Knauth, Editing by Alexia Garamfalvi, Michael O'Sullivan and Deepa Babington)