Cryptocurrency

Lawyers for the crypto exchange and its creditors&#39; committee have strongly opposed Sam Bankman-current Fried&#39;s plea to have his legal bills refunded.According to previous Cointelegraph reporting, Bankman-lawyers Fried&#39;s filed a motion on March 15 to have his court fees covered by directors and officers (D&amp;O) insurance coverage, which if approved by the judge would place him at the top of the payout queue.FTX&#39;s lawyers opposed to Bankman-attempt Fried&#39;s to prioritize his own legal fees at the expense of other possible claimants in a March 29 objection filing, stating: &#34;To allow Mr. Bankman-Fried to drain the D&amp;O Policies for his personal profit would be unfair, inequitable, and contrary to the interests of justice.&#34;If the court determines in favor of Bankman-Fried, FTX&#39;s lawyers believe that the insurance reimbursement should be extended to other directors and officials who have a claim to the assets.On the same day, the Official Committee of Unsecured Creditors filed an objection, noting that D&amp;O insurance policies only apply &#34;when they make honest judgments in the usual course of business,&#34; which it contends &#34;is not the case&#34; in the instance of Bankman-request. Fried&#39;sAccording to the committee, the court should deny the request because Bankman-Fried is the &#34;alleged perpetrator of one of the greatest criminal scams in the recent decade.&#34; Prior to Sam Bankman Fried&#39;s plea, some in the crypto community expressed similar sentiments.Directors and officers (D&amp;O) liability insurance protects individuals from personal losses if they are sued as a result of serving as a director or officer for a company. The firm can also use such plans to pay legal fees and costs incurred as a result of a lawsuit filed against a former officer or director.The creditors committee, on the other hand, contended that Bankman-Fried had failed to support his claim to the $10 million in available coverage, which should instead be used to compensate FTX for its losses. According to rumors, the former FTX CEO is paying his legal bills with $10 million he previously donated to his father, Joseph Bankman, after Alameda Research loaned the monies to Bankman-Fried.Bankman-Fried was charged with 12 criminal offenses on February 22, including various fraud accusations, and was reduced to a baker&#39;s dozen on February 28 after allegations that he spent $40 million to bribe a Chinese official.

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