Crypto magnate Sam Bankman-Fried sues CNA for not covering his expenses

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Crypto magnate Sam Bankman-Fried sues CNA for not covering his expenses

Former cryptocurrency magnate Sam Bankman-Fried has taken legal action against his insurer Continental Casualty Company, accusing them of not covering his legal expenses related to his fraud defense.

Bankman-Fried appeared in court Tuesday, denying any fraud activities, describing his role in multiple legal and regulatory proceedings due to the downfall of his crypto platform, FTX FTT/USD.

The future of digital assets conference on Nov. 14 at Benzinga brings to mind the intricate relationship between digital assets and legal implications.

The paperwork further highlights the possible significant and lasting damage to Bankman-Fried, for which legal remedies may be insufficient.

CNA's insurance policy provides coverage for up to $5 million, which becomes applicable once a primary policy of $10 million is utilized.

This lawsuit underscores the escalating legal bills Bankman-Fried has been facing since the bankruptcy declaration of FTX in late 2022.

Benzinga will continue to speak with CNA about the lawsuit.

It was later revealed that this bond had the backing of his family and a couple of acquaintances associated with Stanford University.

Bankman-Fried said earlier this year that he was interested in parting with Robinhood HOOD shares valued at approximately $500 million.

The Department of Justice now has the power to control these assets.

Bankman-Fried's legal action commenced Tuesday in a Manhattan legal facility, prompting a jury selection process.

Bankman-Fried's defense team says remote testimony from a Ukrainian customer infringes on his constitutional rights.

At Benzinga's exclusive event - Future of Digital Assets, meet and engage with transformative Digital Asset and Crypto business leaders and investors.