FTX Drama Extends to Bitter Fight Over Limited Insurance Pie (1)

FTX’s legal drama doesn’t stop at Sam Bankman-Fried’s conviction, as the crumbled crypto exchange’s former executives fight over whether insurance policies will cover their attorney fees.

At the heart of the dispute is a basic problem: there isn’t enough insurance money to go around.

Bankman-Fried, FTX’s co-founder, sued one of the company’s insurers, the Continental Casualty Co., a day before his criminal trial started in October. He alleged the CNA Financial Corp. unit breached its contract by refusing to pay his legal bills.

A week later, Daniel Friedberg, FTX’s former general counsel and chief regulatory officer, asked to join the ...