FTX Resumes Payments of Staff and Service Providers

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FTX Resumes Payments of Staff and Service Providers

The new CEO of the bankrupt cryptocurrency exchange , John J. Ray III, announced that most FTX subsidiaries around the world had resumed normal course payment of salary and benefits to employees worldwide, as well as normal course payments to certain non-U.S. contractors and service providers.

The relief was announced by FTX Trading Ltd. and about 101 other connected firms (FTX Debtors). However, it did not have any impact on the personnel or operations of FTX.US.

In the United States, FTX filed for bankruptcy protection under Chapter 11 on November 11, and the company has said that it would continue to make payments to vendors and service providers in the usual manner for any products and services given on or after that date. In addition, cash payments are permitted, however they are subject to any restrictions that may be imposed either before or after the bankruptcy filing date.

I am pleased that the FTX group is resuming ordinary course cash payments of salaries and benefits to our remaining employees around the world, as stated by John J. Ray III, who said, “With the Court’s approval of our First Day motions and the work that is being done on global cash management, I am pleased that the FTX group is doing so.”

However, this will not apply to a number of different jurisdictions. Because FTX Digital Markets Ltd (FTXDM) is the subject of a separate liquidation proceeding in The Bahamas and because it is not included in or protected by Chapter 11 proceedings in the States, employees and contractors of FTX Digital Markets Ltd (FTXDM) are not eligible for relief in The Bahamas. This is the case because FTXDM is not protected by Chapter 11 proceedings in the United States.

In the same vein, FTX Australia Pty Limited and FTX Express Pty Ltd were not included in Chapter 11 of the United States Code since they were considered to be independent legal companies.

Compiled by Coinbold

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