FTX Founder In Deep Legal Trouble, Demands Insurers Pay Up To Cover Fees

FTX FTT/USD founder Sam Bankman-Fried filed a motion Wednesday requesting that Relm Insurance and Beazley Insurance prioritize reimbursing his legal fees and advance future costs. in accordance with their policy conditions.

Directors' and officers' (D&O) insurance policies prioritize payments to insured members of the company based on their seniority. Bankman-Fried’s status as former CEO would put him at the top of that list.

Although D&O insurance protects individuals from personal losses due to being sued for alleged wrongful acts in managing a company, it typically excludes criminal or deliberately fraudulent activities.

See Also: Say Goodbye To Hidden Crypto Wealth — UK Taxpayers Will Need To Disclose Holdings On Tax Forms

Bankman-Fried currently faces a total of 12 criminal charges, including conspiracy to commit wire fraud and money laundering, and defrauding the Federal Elections Committee (FEC).

He also faces civil actions from the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC), although these cases have been deferred until the conclusion of the DOJ’s proceedings.

In December, Bankman-Fried’s parents, Joseph Bankman and Barbara Fried expressed concern that their son’s legal bills would financially devastate them, as reported by the Wall Street Journal.

Any responses or objections to Bankman-Fried’s motion must be filed by Mar 29.

If none are filed, his legal counsel has requested that the relief request is granted without further notice.

Next: India And UAE Join Forces To Create A Digital Currency