Former FTX CEO Sam Bankman-Fried seeks insurance coverage for legal expenses

Sam Bankman-Fried seeks court assistance to prioritize reimbursement of attorney fees. His CEO of FTX, Sam Bankman-Fried, has sought court assistance in prioritizing reimbursement of attorney fees.

SBF Lawyers Want to Get Paid

The move comes after Bankman-Fried was named as a defendant or was involved in various criminal, regulatory, civil and other lawsuits resulting in significant unpaid attorneys’ fees and other costs.

To cover these costs, FTX’s legal representative will either provide upfront financial assistance to the insurance company or use the company’s directors and officers (D&O) insurance to cover any costs associated with his defense. I formally requested a refund of Bankman-Fried fees.

according to motion:

“Mr. Bankman-Fried has been named as a defendant or has been involved in criminal, regulatory, civil and other lawsuits and proceedings resulting in significant unpaid attorneys’ fees and other costs, It may happen again.”

The insurance policies Bankman-Fried holds are intended to cover just such situations. He has notified several insurance companies of pending claims, also known as “pending claims.”

According to Realm, the leading carrier for directors and officers (D&O), the policies referred to in this motion reserve the right to assess the scope and Bankman-Fried is subject to agreements or policies with debtors. motion before any payment is made.

Liability insurance, as a type of insurance policy, is designed to protect against personal financial loss if you are sued for your services as a director or officer of a corporation or other type of organization. This insurance policy is intended to cover the legal claims of founders and corporate executives, including legal costs, fees and other costs that may arise due to litigation.

SBF litigation costs pile up

Meanwhile, in February, Bankman-Fried was indicted on four additional criminal charges by the federal judge presiding over his case, bringing the total to 12 criminal charges.

Experts estimate his legal costs to be in the nine-figure range.

In February, CryptoSlate was forced to hire a tech expert to monitor Bankman-Fried’s bail status after it was revealed he used a VPN to watch the Super Bowl and play League of Legends. was reported to be likely.

In January, FTX paid out more than $34.18 million in various legal costs. In addition, FTX’s new CEO and Chief Restructuring Officer, John J. Ray III, now earns $1,300 an hour, totaling more than $300,000.