Crypto neobank Banq’s bankruptcy case has been dismissed by a U.S. judge due to allegations that the application was made in bad faith. The judge ruled that the bankruptcy filing was intended to shield the company and its executives from ongoing litigation by a creditor. Banq and its chair, Jon Jiles, are being sued by creditor N9 over allegations of failing to fulfill fiduciary duties. The judge stated that the bankruptcy proceedings were primarily focused on pursuing litigation against a former CEO, rather than a legitimate business reorganization. It was revealed that Jiles had funded the bankruptcy proceedings through a loan from his company, NVF LLC. The case has been described as a dispute between Banq, Jiles, and the former CEO, rather than an actual bankruptcy.
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Crypto Neobank Banq’s Bankruptcy Case Dismissed by U.S. Judge
