FTX Resume Post-Bankruptcy Payments For Its Employees Salaries and Vendor.
It was announced today that FTX, a defunct cryptocurrency company, would resume paying salary and benefits to its employees worldwide and certain contractors outside the US.
The firm would not pay anything to SBF and Caroline Ellison
An employee and vendor compensation and benefit motion was filed a week earlier by FTX’s legal counsel.
As part of the motion, FTX stated that the company would not pay anything to Sam Bankman-Fried, Gary Wang, Nishad Singh, Caroline Ellison, or anyone with whom it has a familial relationship.
“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,” said John J. Ray III.
“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.
He acknowledged the hardship caused by the temporary interruption in these payments, and he thanked all of their valuable employees and partners for their support.
The relief only applies employee or contractor of FTX debtors
Relief includes cash payments both within the pre-petition period and during the post-petition period, subject to bankruptcy court orders limiting pre-petition payments.
In the event that FTX files Chapter 11, all goods and services will be paid to vendors and service providers in the normal course of business.
Employees or contractors of the FTX Debtors are eligible for relief in The Bahamas, but not those of FTX Digital Markets Ltd.
In spite of this, crypto users reacted unkindly to this news, believing the company paid back their employees with the money they stole.
“So those who knew exactly what they were doing can continue to be paid with money they stole from investors? 🙃@SBF_FTX really watching out for his fam here,” said one Twitter user.
— Paolo (@Paolo1922) November 28, 2022
The same comment was made by another user, “ @FTX_Official so you’re paying staff with customers money you stole???.”