Sam Bankman-Fried seeks to have FTX cover his legal bills

Former FTX chief Sam Bankman-Fried (SBF) sought to use страховкой ответственности руководства to pay the bills charged by his lawyers, The Block reports.

Fulfilling the lawyers’ request by the co-founder the bankrupt exchange would give him priority in payouts over other users.

In December, the US Department of Justice charged the former crypto billionaire with eight criminal counts. He was arrested in the Bahamas for extradition to the United States, where he was released on on bail of $250 million.

In February 2023, prosecutors increased the number of charges against SBF to twelve.

Lawyers for the former FTX boss asserted their client’s right of access to the exchange’s corporate Directors&Officers Liability policies, entered into with Relm Insurance and Beazley Insurance.

Lawyers asked the court to recognise that under these policies SBF has a priority right to payments from FTX’s funds.

Earlier, experts estimated the costs of the company’s bankruptcy legal representation at $20 million.

The current FTX management did not agree with SBF’s demands. The court will decide.

As reported, the company’s current CEO John Ray said there was a ‘substantial shortfall’ of capital.

According to the exchange’s court filing, the asset shortfall totals $8.7 billion, of which $1.6 billion is Bitcoin.