According to ChainCatcher, the crypto new bank Banq previously filed for Chapter 11 bankruptcy protection in the Nevada Bankruptcy Court, but its application has been rejected.

Natalie M. Cox, the judge who heard the case, said the bank's bankruptcy application was a "bad faith" strategy to "gain an advantage in pending litigation" rather than reorganize. Judge Cox wrote in his ruling 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 with $3 million in shares.

N9 accused Jiles of failing to fulfill his fiduciary duties and putting the interests of Prime Trust (he is the founder and managing member of the company) above the interests of Banq. Earlier news, Banq, a subsidiary of crypto custody company Prime Trust, has filed for bankruptcy protection in the Bankruptcy Court for the District of Nevada, USA.