If granted, the request would place the former FTX CEO at the top of the exchange's payout list.
The former FTX CEO's legal counsel requested in a motion to permit insurers to advance or reimburse his defense costs and fees under directors and officers insurance policies held with Relm Insurance and Beazley Insurance. As per the filing, the policies"provides priority of payment to individual insureds with un-indemnified loss like Mr. Bankman-Fried.” Meaning the former CEO would be on top of the FTX payout list.
"Based on the foregoing, Mr. Bankman-Fried submits that ample cause exists to lift and modify the automatic stay [...] to allow Relm and Beazley to reimburse Mr. Bankman-Fried for covered Defense Costs that have already been incurred under the D&O Policies, and advance future covered Defense Costs unless and until the Defense Costs no longer qualify as Non-Indemnifiable Losses under the terms of the D&O.
Bankman-Fried's counsel noted that"there are multiple criminal, regulatory, insolvency-related and civil actions" involving the former CEO, including one criminal proceedings, three federal and state regulatory proceedings, and five insolvency-related proceedings, as well as seven legal actions.
Cointelegraph previously reported that law firms, investment banks and consulting companies working with FTX on its bankruptcy case
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