Crypto tycoon Sam Bankman-Fried has sued his insurance provider, CNA, for allegedly failing to pay legal costs linked to his defense against fraud allegations.
Bankman-Fried has pleaded not guilty to fraud charges levied by U.S. prosecutors in a trial that starts Tuesday. The legal complaint filed against CNA said he is also involved in a dozen civil and regulatory actions relating to his collapsed crypto exchange FTX. CNA, also known as the Continental Casualty Company, has “unjustifiably failed to make timely payment on Mr. Bankman-Fried’s claims as required by the Policy,” said the, adding that those alleged breaches “have caused, and threaten to cause, substantial and irreparable harm to Mr. Bankman-Fried for which there is no adequate remedy at law.”
His CNA policy has a limit of liability of $5 million, kicking in when an underlying $10 million policy is exhausted, the document said. The filing makes clear the mounting financial cost of litigation for Bankman-Fried since FTX declared bankruptcy in November 2022.