US judge rejects crypto bank Banq's bankruptcy filing, calling it a bad faith ploy

Banq, which filed for bankruptcy last year, has had its application dismissed by a U.S. judge who ruled that the filing was an effort to protect the company and its executives from ongoing lawsuits by creditors. Banq and its chairman, Jon Jiles, were sued by creditor N9, alleging Jiles failed to fulfill his fiduciary duties. The judge hearing the case, Natalie M. Cox, called the bank's bankruptcy filing a "bad faith" strategy to "gain advantage in pending litigation" rather than reorganize. Judge Cox wrote in her ruling that the bankruptcy proceedings were a strategy to protect Banq and its founder, Jon Jiles, from an investor lawsuit filed by N9, the company's main creditor with a $3 million stake. N9 accused Jiles of failing to fulfill his fiduciary duties and putting the interests of Prime Trust, of which he is the founder and managing member, above those of Banq.