FTX’s lawyers and creditors’ committee have objected to Sam Bankman-Fried’s request for his legal expenses to be reimbursed, with a hearing scheduled for April 12. Bankman-Fried had filed a motion seeking coverage of his court costs by directors and officers insurance policies, which would place him at the top of the payout queue.
FTX’s lawyers argue that the insurance payout should apply to other directors and officers who have a claim to the funds, while the creditors’ committee has labeled Bankman-Fried the “alleged perpetrator of one of the largest criminal frauds in the last decade.” Bankman-Fried was charged with 12 criminal counts on Feb. 22 and 13 on Feb. 28, including numerous fraud charges and allegations of attempting to bribe a Chinese official.
