- BlockFi creditors have asked that their details be kept private.
- BlockFi shares concerns about identity theft and becoming a target for hackers.
BlockFi, an online platform and mobile app that allows users to purchase, sell, and trade cryptocurrency, has filed for bankruptcy and is attempting to keep their personal information private in a court filing on Tuesday.
They have also claimed that they are concerned about identity theft or being a target for hackers. Creditors of the cryptocurrency lender are attempting to avoid a situation similar to that of celsius. As part of routine legal practice, the financial details of hundreds of thousands of users were revealed.
Andrew Vara of the United States Department of Justice said that
“Disclosure is a basic premise of bankruptcy law” and is required. The topic will be addressed at a hearing on January 17th.
And the BlockFi creditors’ committee stated that giving out a valuable client list for free would lower the value of the estate, and this behavior caused the user to experience theft and hacking.
And hacks have occurred in court proceedings, as in the instance of the key developer of bitcoin, who lost 200+ bitcoins in a hack last week. In addition, the Raydium exchange gateway was recently hacked, resulting in a $2.2 million loss.
