FTX execs want slice of insurance pot to pay attorneys
Just days after its disgraced CEO was found guilty of wire fraud, conspiracy, and money laundering, former FTX execs are doing their best to keep the legal circus on the road by fighting over who deserves a cut of the firm’s insurance policies to pay their legal bills. As reported by Bloomberg Law, the problem lies in the fact that there’s not enough money in the insurance pot to go around. FTX was reportedly covered by four major insurers — Beazley Plc, QBE Insurance Group Ltd., Hiscox Ltd., and Continental Casualty Co. — each offering up to $5 million in coverage. However, newly convicted Sam Bankman-Fried sued the Continental Casualty Co., in early October, claiming that it refused to pay his legal costs . Shortly afterward, the firm’s former chief regulatory officer Daniel Friedberg, who was accused of helping Bankman-Fried to steal customer funds, asked to join the suit. According to Bloomberg, D&O insurers should be responsible for legal fees incurred by more...