Sam Bankman-Fried’s petition to be reimbursed for his legal expenses has been met with strong opposition from lawyers representing the crypto exchange and its creditors’ committee.
On March 15, Bankman-Fried’s lawyers submitted a motion to have his court costs covered by the directors and officers (D&O) insurance policies, which, if approved by the judge, would put him at the top of the payout list.
On March 29, FTX’s lawyers submitted an objection to Bankman-Fried’s attempt to prioritize his own legal fees over other potential claimants, saying:
“It would be unfair, inequitable, and contrary to the interests of justice to allow Mr. Bankman-Fried to take out the D&O Policies solely for his own benefit.”
FTX’s lawyers argued that if the court rules in favor of Bankman-Fried, then the insurance payout should be applied to other directors and officers who have a claim to the funds.