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The list of approximately nine million FTX customers is “extremely valuable” and could damage the trading value of a cryptocurrency exchange if released, a member of the FTX restructuring team claims.
In a court filing published on June 8, Kevin Kofsky, a partner at investment bank Parella Weinberg on FTX’s advance, said that if competitors get information about FTX’s customers, it will “damage” the exchange’s restructuring efforts.
According to him, Kofsky is part of a team looking to squeeze the most out of FTX, which could lead to a potential sale of the embattled exchange:
“We believe that the existing customer base is extremely valuable and our understanding is based on our research and consideration of costs incurred by other crypto companies specifically to attract customers.”
The list of clients is currently classified, but major media outlets including Bloomberg, the Financial Times, The New York Times and The Wall Street Journal’s parent firm, Dow Jones & Company, have filed objections to the decision.
The media claimed that the press and the public had “a purported right of access to bankruptcy filings”.
Related: SEC Cryptocurrency Action Up 183% In 6 Months After FTX Crash
FTX has begun a “significant” process of generating interest from buyers, investors, or even restarting the exchange, Kofsky said, and the customer list is “extremely valuable” to those interested in the business.
Based on Cofsky’s discussions with interested bidders: “Existing customers would be extremely valuable to […] third parties interested in investing in the business.”
Also sees value in the list for reorganization where customers get equity and interest to trade on the exchange.
— FTX 2.0 Coalition (@AFTXcreditor) June 8, 2023
“I think that making this information public would be detrimental to the debtor’s ability to maximize the value it currently has,” he added.
Kofsky believes that even if the exchange doesn’t sell or find investors, restarting the exchange could result in lenders charging a portion of the trading fees on what he called “top-notch” and “regulatory-compliant” FTX.