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:

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.


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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