1 year ago
Crypto tycoon Sam Bankman-Fried has sued his security provider, CNA, for allegedly failing to wage ineligible costs linked to his defence against fraud allegations.
Bankman-Fried has pleaded not blameworthy to fraud charges levied by U.S. prosecutors successful a proceedings that starts Tuesday. The ineligible ailment filed against CNA said helium is besides progressive successful a twelve civilian and regulatory actions relating to his collapsed crypto speech FTX.
CNA, besides known arsenic the Continental Casualty Company, has “unjustifiably failed to marque timely outgo connected Mr. Bankman-Fried’s claims arsenic required by the Policy,” said the filing, adding that those alleged breaches “have caused, and endanger to cause, important and irreparable harm to Mr. Bankman-Fried for which determination is nary capable remedy astatine law.”
His CNA argumentation has a bounds of liability of $5 million, kicking successful erstwhile an underlying $10 cardinal argumentation is exhausted, the papers said. The filing makes wide the mounting fiscal outgo of litigation for Bankman-Fried since FTX declared bankruptcy successful November 2022.
After being arrested successful December, helium was primitively released connected bail connected a $250 cardinal bond, that was yet revealed to person been co-signed by his parents and 2 household friends linked to Stanford University.
In a January Substack post, Bankman-Fried suggested helium would beryllium consenting to surrender immoderate $500 cardinal worthy of Robinhood shares successful instrumentality for entree to FTX’s directors and officers (D&O) security argumentation for executives, though those assets person present been confiscated by the Department of Justice.
Bankman-Fried’s fraud proceedings began Tuesday successful a Manhattan courthouse, starting with a process known arsenic voir dire, utilized to prime members of a jury.
CNA did not instantly respond to CoinDesk’s petition for comment.
Edited by Sandali Handagama.
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