TechFlow reported on October 14 that, according to CoinDesk, U.S. District Judge Natalie M. Cox for the District of Nevada dismissed the Chapter 11 bankruptcy filing by crypto bank Banq. Judge Cox ruled the filing was a "bad-faith" maneuver intended to "gain an advantage in pending litigation," rather than a legitimate effort to reorganize the business.
Banq and its chairman Jon Jiles are facing a lawsuit from major creditor N9, which alleges that Jiles failed in his fiduciary duties by prioritizing the interests of Prime Trust over those of Banq. N9 claims in the lawsuit that Jiles used his control over Banq to benefit Prime Trust, leading to Banq's collapse.
Meanwhile, Banq is suing its former CEO Scott Purcell, accusing him of transferring $17.5 million in assets and technology to Fortress NFT Group, a competing firm he recently founded. Judge Cox stated that Banq's bankruptcy petition was not a genuine reorganization plan but rather a tactic designed to obstruct N9’s pursuit of claims against Jiles for breach of fiduciary duty.
