FTX asserts that the disclosure of its “precious” customer list would inflict harm upon the exchange’s sale value, as argued by a member of the FTX restructuring team.
During a court hearing on June 8, Kevin Cofsky, a partner at Parella Weinberg, an investment bank retained by FTX, emphasized the detrimental impact that competitors gaining knowledge of FTX’s customer base would have on the exchange’s restructuring endeavors.
Cofsky, part of the team striving to extract the utmost value from FTX, which could encompass a potential sale of the embattled exchange, stated:
“Our belief is rooted in meticulous research and an examination of the costs incurred by other crypto companies in their customer solicitation efforts.”
Although the customer list remains sealed presently, mainstream media entities, including Bloomberg, the Financial Times, The New York Times, and Dow Jones & Company, the parent firm of The Wall Street Journal, have filed objections against this decision.
According to Cofsky, FTX has initiated a “significant” process to elicit interest from prospective buyers, investors, or even a relaunch of the exchange. Those invested in the business regard the customer list as “extremely valuable and esteemed.”
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 reorganisation where customers get equity and interest to trade on the exchange.— FTX 2.0 Coalition (@AFTXcreditor) June 8, 2023
He further added, “Revealing this information would impair the debtor’s ability to maximize its existing value.”