Ramesh "Sunny" Balwani, the former lover and business partner of Theranos Chief Executive Elizabeth Holmes, was sentenced to nearly 13 years in prison for his role in the company's blood-testing hoax—a punishment slightly longer than that given to Holmes, who was his accomplice in one of Silicon Valley's biggest scandals.

Unless she can find a way to stay free, Holmes will be separated from the two children she had leading up to the trial and after her conviction.

As it looks to the future, FTX is negotiating with stakeholders about options for restarting its crypto exchange, and it may make a decision on that in the current quarter, [FTX attorney Andy] Dietderich said. He offered few details on what a reboot might mean for FTX customers whose crypto deposits have been locked up during the bankruptcy case.

So far, FTX customers in Japan have been the only ones able to withdraw any funds so far, because of that country's relatively strong crypto regulations, Dietderich said. FTX would need significant capital to restart its crypto exchange, because the existing customer interface had little connection to the movement of money behind the scenes, the lawyer said.

"The app worked beautifully, but in truth it was a facade," Dietderich said.

Lawyers for FTX noted that other current and former employees of the crypto exchange are also eligible to use the insurance, and said that it would be unfair for Bankman-Fried to have special access to the policy.