SBF’s Latest Request Is Outrageous And Insulting• April 11, 2023 7:53 pm • Comments
There is just no other way to say it…SBF’s latest request is tone-deaf and insulting to the platform’s creditors, depositors, and former clients.
The former FTX CEO demanded that FTX’s $10 million insurance policy, for corporate legal fees, cover his legal expenses—this means that before anyone receives a dime, he is going to get some sort of payout.
Technically, SBF has not yet been convicted of a crime and, according to him, he should be entitled to use that money for his ongoing legal battle.
This could prove to be disastrous for the disgraced CEO, as a loss in court may obligate him to pay back any and all funds used to cover his case. …
Previously, SBF asked for access to his highly contested Robinhood account—something FTX’s lawyers vehemently objected to, in order to cover his legal fees. According to Watcher.Guru the portfolio is worth $450 million
Here’s more on the story:
JUST IN: SBF requests access to his $450 million Robinhood $HOOD stake for legal fees.
— Watcher.Guru (@WatcherGuru) January 6, 2023
The Block reports:
On Wednesday, a bankruptcy judge is set to weigh whether Bankman-Fried, the founder and former CEO of FTX, can access the company’s $10 million director and officer liability insurance to reimburse his hefty legal bills.
Bankman-Fried asked the judge to lift a stay that would allow the insurance providers, Relm Insurance and Beazley Insurance, to evaluate whether he’s covered and make payments in line with the terms of the policy.
7/16 SBF claims Debtors paint this as a $10mm request when its not. Technically this is true, but then states nearly $1mm would need to already be reimbursed to SBF, which under a $10mm policy and continued run-rate would be gone very quickly. So, it kinda is a $10mm request. pic.twitter.com/cE2jmuGfby
— Mr. Purple (@MrPurple_DJ) April 10, 2023
According to Coin Telegraph, creditors and lawyers for FTX are already up in arms about the daft request:
In March 29 objection filing, FTX’s lawyers objected to Bankman-Fried’s attempt to prioritize his own legal fees at the expense of other potential claimants, stating:
“It would be unfair, inequitable, and contrary to the interests of justice to allow Mr. Bankman-Fried to drain the D&O Policies for his sole benefit”
FTX’s lawyers argue that if the court rules in favor of Bankman-Fried then the insurance payout should apply to other directors and officers who have a claim to the funds.
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