Bankrupt Crypto Exchange FTX is Set to Resume Payments to Employees

Bankrupt Crypto Exchange FTX is Set to Resume Payments to Employees

Payments will be resumed for employees and vendors of 101 companies in FTX Group, including FTX Trading.

FTX, a now-bankrupt Bahamas-based cryptocurrency exchange established in 2019, is set to resume its “ordinary” payments, like salaries and benefits.

According to the press release shared on November 28th, employees and “non-U.S. contractors and service providers” will receive payments from “pre-petition and post-petition periods.”

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In the press release, FTX CEO John J. Ray III noted:

With the Court's approval of our First Day motions and the work being done on global cash management, I am pleased that the FTX group is resuming ordinary course cash payments of salaries and benefits to our remaining employees around the world.

On top of that, John J. Ray III added that payments will be issued to “selected non-U.S. vendors and service providers” that need funding to “preserve business operations.” A newly appointed FTX CEO thanked the company's employees and partners for their support.

It is worth noting that on November 19th, FTX debtors filed a motion urging the company to pay compensation and benefits to its employees and contractors, excluding former FTX CEO Sam Bankman-Fried, Gary Wang, Nishad Singh, and Caroline Ellison.

Based on the press release, payments will be distributed to employees of FTX Trading and around 101 companies in FTX Group, listed in the November 11th bankruptcy filing, as well as several vendors and service providers.

It must be emphasized that due to separate liquidation proceedings, not all FTX-related firm workers will receive payments. For example, in the Bahamas, money will be distributed only to the workers and vendors of FTX Debtors, leaving FTX Digital Markets employees without compensation or salaries.

The same applies to Australia-based FTX companies. Due to a separate investigation, employees and vendors of FTX Australia and FTX Express are not subject to these payments.

Gile K. - Crypto Analyst

by Gile K. - Crypto Analyst, BitDegree


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