Crypto tycoon Sam Bankman-Fried sues insurance provider, claims he did not pay legal fees

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Crypto tycoon Sam Bankman-Fried sues insurance provider, claims he did not pay legal fees

Sam Bankman-Fried, a renowned crypto tycoon, has filed a lawsuit against his insurance provider, CNA, alleging that he did not pay legal fees linked to his defense against fraud allegations.

Bankman-Fried, 32, pleaded not guilty to charges of fraud levied by U.S. prosecutors in a series of courtroom trials that begin Tuesday. CNA's legal complaint said he is also involved in a dozen civil and regulatory actions relating to his collapsed cryptocurrency exchange FTX.

He said that his CNA policy has a limit of liability of $5 million, kicking in when an underlying $10 million policy is exhausted. The filing makes clear the rising financial costs of court action for Bankman-Fried since FTX declared bankruptcy in November 2022.

He was originally released on bail on a $250 million bond in December, but was later revealed to have been co-signed by his parents and two family friends linked to Stanford University.

Bankman-Fried suggested in January that he would surrender some $500 million worth of Robinhood shares in exchange for access to FTX's directors and officers insurance policy for executives, though those assets have now beenseized by the Department of Justice.

Bankman-Fried's fraud trial began Tuesday in a Manhattan courthouse, beginning with a process known as voir dire, used to select members of a jury.