FTX resumes employee and contractor payments after weeks in limbo
Bankrupt crypto exchange FTX has announced it will be “resuming ordinary” cash payments, salaries and benefits to its remaining employees around the world.
The announcement came from new FTX CEO John Ray III on Nov. 28, as the insolvency professional looks to help FTX and its approximated 101 affiliated companies (FTX Debtors) navigate their way through the U.S. Bankruptcy Court in Delaware.
“FTX also is making cash payments to selected non-U.S. vendors and service providers where necessary to preserve business operations, subject to the limits approved by the Bankruptcy Court,” he added.
The announcement comes around 10 days after FTX debtors filed a motion to pay prepetition compensation and benefits to employees and contractors in the Delaware bankruptcy court on Nov. 19, which excludes payments to former FTX CEO and founder Sam Bankman-Fried, along with Gary Wang, Nishad Singh, and Caroline Ellison.
Sharing our press release just issued: FTX Resumes Ordinary Course Payments of Employees and Certain Foreign Contractors https://t.co/8CDnlsvu2j
The latest announcement will mean that the remaining employees and contractors of FTX will be receiving nearly three weeks' worth of pay, which was presumably halted after the company filed for bankruptcy on Nov. 11.
Ray acknowledged the financial hardship imposed on FTX employees and foreign contractors with the payment delay and thanked them for their support.
The relief will include cash payments owed to workers at FTX Trading and 101 other affiliated companies since the Nov. 11 bankruptcy filing, in addition to the many vendors and service providers who still need to be paid out by FTX.
However, the resumption of payments won’t apply to all FTX subsidiaries and related companies.
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