Sam Bankman-Fried petitions court to prioritize reimbursing his legal fees

Sam Bankman-Fried is seeking to usage FTX's security policies to screen his ineligible expenses, according to a tribunal filing connected March 15. 

The erstwhile FTX CEO's ineligible counsel requested successful a question to licence insurers to beforehand oregon reimburse his defence costs and fees nether directors and officers (D&O) security policies held with Relm Insurance and Beazley Insurance. As per the filing, the policies "provides precedence of outgo to idiosyncratic insureds with un-indemnified nonaccomplishment similar Mr. Bankman-Fried.” Meaning the erstwhile CEO would beryllium connected apical of the FTX payout list.

"Based connected the foregoing, Mr. Bankman-Fried submits that ample origin exists to assistance and modify the automatic enactment [...] to let Relm and Beazley to (a) reimburse Mr. Bankman-Fried for covered Defense Costs that person already been incurred nether the D&O Policies, and (b) beforehand aboriginal covered Defense Costs unless and until the Defense Costs nary longer suffice arsenic Non-Indemnifiable Losses nether the presumption of the D&O." 

According to Investopedia, directors and officers liability security intends to "protect individuals from idiosyncratic losses if they are sued arsenic a effect of serving arsenic a manager oregon an serviceman of a concern oregon different benignant of organization," including covering ineligible fees and different costs arsenic a effect of a suit.

Related: SBF’s lawyers awesome request to propulsion backmost October transgression trial

Responses oregon objections to the question indispensable beryllium filed until March 29, 2023. If required, a proceeding volition beryllium held connected April 12, 2023, astatine United States Bankruptcy Court for the District of Delaware. If nary responses oregon objections are filed, Bankman-Fried asks the tribunal to assistance the alleviation petition without further notice. 

Bankman-Fried's counsel noted that "there are aggregate criminal, regulatory, insolvency-related and civilian actions" involving the erstwhile CEO, including 1 transgression proceedings, 3 national and authorities regulatory proceedings, and 5 insolvency-related proceedings, arsenic good arsenic 7 ineligible actions.

On Feb 23, Bankman-Fried was charged connected 4 caller transgression counts by a national justice presiding implicit his case, totaling 12 transgression charges against him, including 8 conspiracy charges related to fraud arsenic good arsenic 4 charges of ligament fraud and securities fraud. His ineligible costs are estimated to beryllium successful the nine-figure range.

Cointelegraph antecedently reported that instrumentality firms, concern banks and consulting companies moving with FTX connected its bankruptcy case billed the crypto speech a combined $34.18 million successful January. FTX’s main restructuring serviceman and caller CEO, John J. Ray III, besides received a important salary, charging $1,300 an hour, amounting to a full of $305,000.