Bankruptcy exchange FTX has announced that it has resumed paying salaries to employees and paying for the services of some select third-party partners.
According to FTX CEO John Ray III, who is in charge of the company’s restructuring process, after an audit of the remaining funds, it was decided to resume payments:
“Following court approval and our fundraising work, I am pleased to announce the resumption of standard payroll and bonus payments to our remaining employees around the world. We will also start paying out to our selected partners whose services are essential to continue business. We understand the hardship caused by the lack of payments and thank everyone for their patience and support.”
Employees will receive payments for approximately three weeks of work. At the same time, the former FTX top management, including Sam Bankman-Fried, Gary Wang, Nishad Singh and Caroline Ellison, will not receive money.
Note that FTX subsidiaries and affiliates have not yet resumed payments. Even in the Bahamas, where the exchange is headquartered, employees of FTX Debtors will receive payments, but employees of FTX Digital Markets will not see the money, since a separate liquidation procedure has been launched against it.
John Ray III hopes that the company’s remaining assets will be enough to pay customers and creditors. However, many lawyers believe that the process of liquidating and recovering losses from an FTX bankruptcy will take years or even decades.
Earlier, Ripple’s director of Asia-Pacific policy, Rahul Advani, said that the collapse of FTX showed the need for regulation of the cryptocurrency industry.
Source: Bits
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