Crypto scammer shifts to scamming insurance in the struggle to pay for his legal defense

Originally published at: Crypto scammer shifts to scamming insurance in the struggle to pay for his legal defense | Boing Boing


It turns out there was a always whole lot of real scumminess underneath the disheveled look he affected.

He probably is making this move in anticipation of this “gift” to his dad being clawed back and given to those he defrauded.


He’d have been much smarter to cut a deal early. Maybe even keep some of his ill gotten gains.

But he’s a “genius” so I guess he’s figured out that a really lengthy prison sentence is better.


Gee, it’s almost like they expected this to be an illegal scam when they built the policy…


TIL C*Os can buy insurance to cover their fuckups.


Can’t tell if self-censoring or a wildcard :thinking:


It is general practice that a board ensures the business carries some percentage of the assessed in some manner value of the business in D&O insurance. The board members usually are the “Officers,” and they will not take liability for things they do on behalf of the business.

Bankman-Fried stealing from the business is not covered by D&O.


Could lawyers who are already accepting money they know came out of this D&O fund be in doo doo?

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So what are the situations in which this insurance pays out?

It’s logical that fraud and embezzlement are not covered, which seems like SBFs situation no matter how much he claims altruistic intent.

Lawsuits against the company for the actions of a Director or Officer – or against a person acting in their role of officer/director. Stealing from the company is outside that role, even if you are employed as the CEO. I would hazard a guess that some of Holmes defense could have been covered under D&O, she was representing the company, claims it wasn’t fraudulent, etc etc etc while defrauding people “on behalf of Theranos.”


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