Judge Dismisses Banq's Bankruptcy Application

According to CoinDesk, Banq, a crypto neobank that filed for Chapter 11 bankruptcy last year, had its application dismissed by a U.S. judge. The judge determined that the filing was an attempt to shield the company and its executives from ongoing litigation by a creditor, rather than a genuine effort to reorganize the business. Banq and its chair, Jon Jiles, are currently being sued by creditor N9 over allegations that Jiles failed to uphold his fiduciary duties. N9, a major creditor with a $3 million stake in Banq, claims that Jiles prioritized the interests of Prime Trust, where he was also a founder and managing member, over those of Banq. The lawsuit alleges that Jiles did not establish a non-compete agreement with former Banq CEO Scott Purcell, instead only putting one in place between Purcell and Prime Trust. This, according to N9, allowed Jiles to leverage his control over Banq to benefit Prime Trust, ultimately leading to Banq's downfall. Judge Natalie M. Cox, who presided over the case, described Banq's bankruptcy application as a