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Crypto Neobank Banq's Bankruptcy Case Dismissed by U.S. Judge

Author: Content Editor
Crypto neobank Banq's bankruptcy application has been dismissed by a U.S. judge who deemed it a tactic to shield the company and its executives from ongoing litigation. The judge ruled that the bankruptcy filing was made in "bad faith" to gain an advantage in pending litigation, rather than to reorganize the company. Banq and its chair Jon Jiles are being sued by creditor N9 for alleged breaches of fiduciary duties. The lawsuit claims that Jiles prioritized the interests of another company he was involved with over Banq's, leading to its downfall. The judge stated that the bankruptcy plan was not a legitimate business reorganization as the company had no sources of revenue and its operations were focused almost exclusively on pursuing litigation against a former CEO. Instead, the judge characterized the case as a dispute between the parties involved, rather than a bankruptcy.

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