Sam Bankman-Fried desires FTX to prioritize masking his authorized payments

Former FTX CEO Sam Bankman-Fried desires to make use of the crypto alternate’s director and officer legal responsibility insurance coverage to pay his authorized payments, his legal professionals stated in a court docket submitting on Wednesday.

If the court docket approves Bankman-Fried’s request, it could successfully put the previous billionaire on the entrance of the road for an FTX payout — forward of the FTX collectors, a transfer that his firm’s new management has to this point resisted.

Bankman-Fried is going through a litany of felony fees for his alleged wrongdoing at FTX, the crypto alternate he based. The previous billionaire is awaiting an October trial and will spend the remainder of his life in jail if he’s convicted on all fees.

Consultants have stated Bankman-Fried’s authorized protection may price hundreds of thousands of {dollars}.

Bankman-Fried seeks a court docket order within the FTX chapter case that may enable him to entry funds via the corporate’s director and officer insurance coverage plan for “the reimbursement and fee of his protection prices.”

Director and officer legal responsibility insurance coverage usually protects the executives of an organization within the occasion that they’re the goal of a lawsuit. Bankman-Fried desires to entry company insurance coverage insurance policies FTX held with Relm Insurance coverage and Beazley Insurance coverage.

Bankman-Fried requested FTX to agree that the insurance coverage coverage “offers precedence of fee to particular person insureds with un-indemnified loss like Mr. Bankman-Fried.” FTX’s new management has not agreed to Bankman-Fried’s request, prompting him to request a decide make them achieve this.

Disclaimer: The previous CEO and majority shareholder of The Block has disclosed a collection of loans from former FTX and Alameda founder Sam Bankman-Fried.