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Wednesday, February 1, 2023

FTX resumes paying staff, contractor salaries following bankruptcy

Coindesk content chief of staff Pete Pachal predicts the FTX contagion will continue, and markets are waiting for the next ‘domino to fall.’

Failed cryptocurrency exchange FTX has announced this week that it has now resumed paying staff and contractors following its bankruptcy filing. 

The company, once owned by Sam Bankman-Fried, said Monday that "most FTX subsidiaries around the world are resuming ordinary course payment of salary and benefits to employees worldwide and ordinary course payments to certain non-U.S. contractors and service providers." 

"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," added new CEO John Ray III. "We recognize the hardship imposed by the temporary interruption in these payments and thank all of our valuable employees and partners for their support."  

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FTX logo cryptocurrency decreasing stock

Representations of cryptocurrencies are seen in front of displayed FTX logo and decreasing stock graph in this illustration taken Nov. 10, 2022.  (Reuters/Dado Ruvic/Illustration/File Photo / Reuters Photos)

The company said the relief "includes cash payments with respect to both pre-petition and post-petition periods, subject to limits for payment of pre-petition amounts established by the orders of the Bankruptcy Court.

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A photo of Sam Bankman-Fried

Sam Bankman-Fried, co-founder and former chief executive officer of FTX, in Hong Kong on May 11, 2021.  (Photographer: Lam Yik/Bloomberg via Getty Images / Getty Images)

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"The FTX group will pay vendors and service providers in the ordinary course for all goods and services provided on or after the Chapter 11 filing date," it added. 

The logo of FTX is seen at the entrance of the FTX Arena in Miami Nov. 12, 2022.  (Reuters/Marco Bello / Reuters Photos)

However, the relief will not apply to certain staff in the Bahamas and Australia as separate liquidation proceedings are ongoing there, the company also said. 

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