Sam Bankman-Fried, the former CEO of FTX trading platform, has been unsuccessful in his attempt to access a $10 million insurance policy to cover his legal costs. During Wednesday’s hearing in the U.S. Bankruptcy Court for the District of Delaware, Bankman-Fried had applied to have the stay lifted on FTX’s director and officer liability insurance policy, which would permit the company’s insurers to consider his claims and potentially reimburse his legal bills.

Judge John Dorsey ultimately denied Bankman-Fried’s motion, noting that he had offered no proof of need or an accurate explanation of why he should have exclusive access to the policy; he did, however, have the option of returning at a later date with evidence that could support his petition for the stay to be removed. Factoring in the charges faced by the former FTX CEO and respective civil court cases, the legal costs for Sam Bankman-Fried may end up running into millions of dollars.

Companies typically initiate director and officer liability insurance in the event their executives fall subject to lawful action, with certain policies including limitations surrounding fraud. The specifics of the FTX policy remain unknown, however the company’s insurance providers are named as being Relm Insurance and Beazley Insurance. Relm Insurance CEO and co-founder, Joe Ziolkowski, has emphasized their commitment to creating a dependable digital asset ecosphere and handling valid and covered claims in accordance with their policy terms. Upon request, Beazley Insurance declined to comment.



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