Troubled cryptocurrency exchange FTX revealed that it would “resume conventional” cash payments, salaries, and benefits to its surviving staff members worldwide excluding former FTX CEO Sam Bankman-Fried, and certain former execs.
The announcement was made on November 28 by John Ray III, the newly appointed CEO of FTX, as the insolvency expert works to assist FTX and its about 101 related entities (FTX Debtors) as they traverse the U.S. Bankruptcy Court in Delaware.
“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.”
In accordance with the Bankruptcy Court-approved restrictions, he said, “FTX is also making cash payments to selected non-U.S. suppliers and service providers were essential to sustain company operations.”
The declaration was made about ten days after the FTX debtors submitted a motion to the Delaware bankruptcy court on November 19 to pay prepetition benefits and compensation to workers and contractors, but excluded payments to Caroline Ellison, Gary Wang, Nishad Singh, and former FTX CEO and founder Sam Bankman-Fried.
According to the most recent notice, FTX’s surviving staff and contractors will soon receive income that was probably stopped when the business declared bankruptcy on November 11.
Ray praised the FTX staff and international contractors for their assistance while acknowledging the financial difficulty the payment delay had caused them.
“We recognize the hardship imposed by the temporary interruption in these payments and thank all of our valuable employees and partners for their support.”
The relief will include cash payments due to employees of FTX Trading and 101 other connected firms since the bankruptcy filing on November 11 in addition to the many suppliers and service providers that FTX still has to pay.
However, not all FTX subsidiaries and associated businesses would be subject to the payment resumption.
Only FTX Debtors’ employees and contractors will be granted relief in The Bahamas, the location of the crypto exchange since FTX Digital Markets is the subject of a separate liquidation case in The Bahamas.
Additionally, it won’t apply to FTX Australia’s employees and contractors in Australia since those parties are already involved in separate legal actions in Australia.
