The FTX board of directors and executives were covered by an insurance policy purchased before the firm collapsed. This time has arrived, and Sam Bankman-Fried desires a share.
Bankman-Fried asked the judge to rescind a stay that would allow Relm Insurance and Beazley Insurance to determine whether he is covered and make payments in accordance with the policy’s terms.
Bankman-Fried has been accused of crimes, but his culpability has not been established. The ex- billionaire’s attorneys argue that he should be presumed innocent and permitted to use his insurance to enhance his defense in court. Denying him access to the plan, in their terms, would constitute “unequal and unfair treatment.”
In December, Bankman-Fried stated that he had less than $100,000 in his bank account. Alameda Research, his insolvent crypto trading firm, reportedly made a gift to his father in order to finance his criminal legal defense.
Bankman-Fried’s motion will be heard by Judge John Dorsey during a hearing in the U.S. Bankruptcy Court for the District of Delaware. If the judge lifts the stay and permits Bankman-Fried to access the policy, and the insurance provider determines he is covered, Bankman-Fried could receive an FTX-linked payout prior to any of the exchange’s creditors.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.