Former FTX CEO Sam Bankman-Fried (SBF) wished to take advantage of management liability insurance to pay bills issued by lawyers, informs The Block.
Satisfying the request of the lawyers of the co-founder of the bankrupt exchange will give him an advantage in payments over other users.
In December, the US Department of Justice indicted the former cryptocurrency multi-billionaire on eight felony charges. He was arrested in the Bahamas to be extradited to the United States, where he was released on $250 million bail.
In February 2023, prosecutors increased the number of charges against the SBF to twelve.
Lawyers for the ex-head of FTX declared the right of access of their ward to the exchange’s corporate insurance policies under the Directors & Officers Liability program, concluded with Relm Insurance and Beazley Insurance.
Lawyers asked the court to recognize that under these policies, SBF receives priority to repay payments from FTX funds.
Previously, experts estimated the costs of legal support for the company’s bankruptcy at $20 million.
The current management of FTX has not agreed with the SBF’s demands. The decision will be made by the court.
Recall that the current CEO of the company, John Ray, announced a “significant shortage” of capital.
According to the exchange’s presentation to the court, the lack of assets in terms of volume is $8.7 billion, of which $1.6 billion is in bitcoin.
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Former FTX CEO Sam Bankman-Fried (SBF) wished to take advantage of management liability insurance to pay bills issued by lawyers, informs The Block.
Satisfying the request of the lawyers of the co-founder of the bankrupt exchange will give him an advantage in payments over other users.
In December, the US Department of Justice indicted the former cryptocurrency multi-billionaire on eight felony charges. He was arrested in the Bahamas to be extradited to the United States, where he was released on $250 million bail.
In February 2023, prosecutors increased the number of charges against the SBF to twelve.
Lawyers for the ex-head of FTX declared the right of access of their ward to the exchange’s corporate insurance policies under the Directors & Officers Liability program, concluded with Relm Insurance and Beazley Insurance.
Lawyers asked the court to recognize that under these policies, SBF receives priority to repay payments from FTX funds.
Previously, experts estimated the costs of legal support for the company’s bankruptcy at $20 million.
The current management of FTX has not agreed with the SBF’s demands. The decision will be made by the court.
Recall that the current CEO of the company, John Ray, announced a “significant shortage” of capital.
According to the exchange’s presentation to the court, the lack of assets in terms of volume is $8.7 billion, of which $1.6 billion is in bitcoin.
Found a mistake in the text? Select it and press CTRL+ENTER
Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!
