FTX Resumes Post-Bankruptcy Payments to Employees
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Bankrupt cryptocurrency company FTX has announced that it will resume "regular payments" of wages and cash assistance to workers around the world and some contractors outside the United States.
The company made the payout announcement a week after FTX lawyers filed complaints about compensation, benefits, and assistance to employees and suppliers. In a statement, FTX noted that the company would not make any payments to senior executives who were involved in the collapse of the company, namely: Sam Bankman-Fried, Gary Wang, Nishad Singh, Caroline Ellison, or "other persons who have a relationship with them".
FTX CEO John Jay Ray III announced that he is pleased that the FTX Group is returning to regular cash wages and benefits for exchange employees worldwide following the Court's approval of their first-day petitions and the work being done on global money management.
According to Ray, the company is making these payments to maintain business operations - subject to restrictions approved by the Bankruptcy Court.
"We regret the difficulties caused by the temporary suspension of these payments and would like to thank all of our valued employees and partners for their support and understanding," he added.
FTX said merchants and service providers will receive cash payments for all goods and services provided after November 11, the company filed for Chapter 11 bankruptcy.
The company also noted that compensation will only apply to employees or contractors of FTX debtors, and not to employees or contractors of FTX Digital Markets Ltd. or employees and contractors of FTX Australia who were not included in the filed FTX application under section 11 in the USA.
Since taking over as CEO of FTX, Ray has tried to distance the company from its founder by publicly stating that Bankman-Fried has no authority in the company.
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