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In the latest development of FTX collapse and bankruptcy matter, advisers Alvarez &amp; Marsal Holdings provided <a href="https://coingape.com/sbf-trial-sam-bankman-fried-defends-8-billion-spending-as-risk-management/" target="_blank" rel="noopener noreferrer nofollow">FTX clients and customer details</a> and trading data to the Federal Bureau of Investigation (FBI).
As per reports published on November 3, the FTX advisers gathered crucial information related to customers, across the US and provided information to the FBI, raising alarming security data concerns.
<h2 id="strong-advisers-gathered-ftx-customer-data-in-response-to-subpoenas-strong">Advisers Gathered FTX Customer Data in Response to Subpoenas&nbsp;</h2>
It is to be noted that the data of customers involved with the FTX, one of the biggest crypto exchanges, which has now collapsed, was provided as a response to subpoenas. According to billing records from consultancy Alvarez &amp; Marsal, from extracting information on specific customers’ trades, investigating accounts, and sifting through cloud computing data, everything was done in the past few months, confirmed sources.
However, the billing records, submitted for bankruptcy court review, don’t detail the nature or target of the FBI probes.
Meanwhile, when asked about the submission of customer details, FTX and the FBI, both declined to comment, while Alvarez refused to comment on the same.
Read Also: <a href="https://coingape.com/us-seizes-54-mln-crypto-including-ethereum-in-narcotics-scheme/" target="_blank" rel="noopener noreferrer nofollow">US Seizes $54 Mln Crypto, Including Ethereum, In Narcotics Scheme</a>
<h2 id="strong-revelation-raises-alarming-concern-over-crypto-trading-privacy-strong">Revelation Raises Alarming Concern over Crypto Trading Privacy</h2>
The revelation that FTX advisers gave away crucial details of FTX <a href="https://coingape.com/glossary/Crypto-exchange-2/" target="_blank" rel="noopener noreferrer nofollow">crypto exchange</a> customers to the FBI shows how there is no guarantee of privacy in crypto trading.
Notably, Alvarez and Marsal said in a court filing it extracted transaction data in September from the crypto firm’s cloud computing provider “related to specific device IDs” in response to a subpoena from the FBI’s Philadelphia office.
Another concerning aspect of the customer’s data revelation is exposing them to possible hacks and phishing, which is being reported widely in the cryptocurrency market.
It is to be noted, that in August, a legal services provider working with FTX said a hacker gained unauthorized access to files that may have contained customer information.
Meanwhile, an expert in crypto and spokesman for crypto policy non-profit Coin Center Neeraj Agarwal said that US crypto firms, in general, have procedures in place to comply with government subpoenas and turn over data. He said when law enforcement has probable cause to obtain particular information, they demand data.&nbsp;
The developments of FTX customer data given to the FBI came a day after FTX owner <a href="https://coingape.com/sbf-convicted-what-happens-next-for-his-inner-circle-ellison-wang-nishad/" rel="noopener noreferrer nofollow">Sam Bankman-Fried was pronounced</a> guilty of all 7 criminal charges. The verdict was unanimously made by a jury of New York court, and the sentencing of imprisonment is expected on March 28, 2024.
&nbsp;Read Also: <a href="https://coingape.com/cardano-ada-defies-broader-market-correction-amid-whale-transactions-whats-next/" target="_blank" rel="noopener noreferrer nofollow">Cardano (ADA) Defies Broader Market Correction Amid Whale Transactions, What’s Next?</a>
The post <a rel="noopener noreferrer nofollow" href="https://coingape.com/ftx-bankruptcy-advisers-provide-customer-data-to-fbi/">FTX Bankruptcy Advisers Provide Customer Data To FBI</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://coingape.com">CoinGape</a>.

FTX Bankruptcy Advisers Provide Customer Data To FBI

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