According to CoinDesk: Sam Bankman-Fried, the founder of FTX cryptocurrency exchange, has filed a lawsuit against his insurance provider, Continental Casualty Company (CNA), alleging a breach of policy in failing to cover his legal defense costs against fraud allegations.

Bankman-Fried is currently facing a fraud trial initiated by U.S. prosecutors, to which he has pleaded not guilty. The lawsuit lodged against CNA specifies that Bankman-Fried is implicated in numerous civil and regulatory actions tied to his defunct crypto exchange, FTX.

According to the filing, CNA has "unjustifiably failed to make timely payment on Mr. Bankman-Fried’s claims as required by the Policy." The complaint indicates that such alleged breaches might lead to irreversible harm to Bankman-Fried for which there is no sufficient legal remedy.

Bankman-Fried's insurance policy with CNA has a liability limit of $5 million, which becomes effective when an underlying policy of $10 million is spent. The legal proceedings against Bankman-Fried are racking up significant costs after FTX declared bankruptcy in November 2022.

Bankman-Fried, who was detained in December 2021 and released on bail with a $250 million bond co-signed by his parents and two family friends, previously suggested he'd surrender $500 million worth Robinhood shares for access to FTX’s directors and officers (D&O) insurance policy for executives. However, those assets have now been seized by the Department of Justice.

The trial, which kicked off on Tuesday in Manhattan, began with the 'voir dire' process utilized for jury selection.