CoinVoice has recently learned that the crypto neobank Banq previously filed for Chapter 11 bankruptcy protection in the Nevada Bankruptcy Court in the United States, but its application has been rejected.
Judge Natalie M. Cox, who heard the case, called the bank’s bankruptcy filing a “bad faith” strategy to “gain advantage in pending litigation” rather than to reorganize.
Judge Cox wrote in his ruling that the bankruptcy proceedings were a strategy to protect Banq and its founder, Jon Jiles, from an investor lawsuit brought by N9, the company’s primary creditor with a $3 million stake. N9 alleged that Jiles failed to fulfill his fiduciary duties and put the interests of Prime Trust, of which he was a founder and managing member, ahead of those of Banq.
It was recently learned that Banq, a subsidiary of crypto custody company Prime Trust, has filed for bankruptcy protection in the U.S. Bankruptcy Court for the District of Nevada. [Original link]