BlockFi Creditors Reluctant To Keep Details Private

January 11, 2023

Story: Divya Sinha

As per the reports, BlockFi creditors have sought to keep their personal information private.

As per the documents filed in court, they are fearing identity theft if their details are revealed as part of a bankruptcy filing.

This comes after Celsius case where the financial information of hundreds of thousands of users was exposed in regular lawsuits.

The filing detailed that BlockFi account holders would be subject to an unreasonable risk of (i) identity theft, (ii) verbal and physical harassment, (iii) theft and/or robbery, and (iv) hacking.

Whereas on the other hand, Andrew Vara, an offical of US Department of Justice argued that disclosure is a basic premise of bankruptcy law.

The matter will be considered at a hearing scheduled for January 17.

BlockFi suspended withdrawals as concerns over FTX debacle and on November 28, the lender filed for Chapter 11 bankruptcy protection.