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US judge rejects crypto bank Banq's bankruptcy filing

US judge rejects crypto bank Banq's bankruptcy filing

CointimeCointime2024/10/14 09:25
By:Cointime

The bankruptcy application of Banq, which was filed last year, has been rejected by a US judge who believed that the application was made to protect the company and its executives from ongoing lawsuits by creditors. Banq and its chairman, Jon Jiles, were sued by creditor N9, who accused Jiles of failing to fulfill his fiduciary duties. Judge Natalie M. Cox, who presided over the case, described the bank's bankruptcy application as a "malicious" strategy aimed at gaining an advantage in the pending litigation rather than restructuring. In her ruling, Judge Cox wrote that the bankruptcy proceedings were a strategy to protect Banq and its founder Jon Jiles from investor lawsuits initiated by N9 (the company's main creditor, who holds a $3 million stake). N9 accused Jiles of failing to fulfill his fiduciary duties and putting the interests of Prime Trust (of which he is the founder and managing member) above those of Banq.

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