After 17 days of the Bankruptcy filing, FTX exchange is ready to pay salaries to all of its current global employees.
FTX is a bankrupt crypto exchange. On 12 November, the backend team filed for bankruptcy under chapter 11 in a US district court. The main reason behind the collapse of FTX was the mismanagement of the user’s fund by the team. The backend team was inappropriately transferring the user’s funds to its affiliated companies, in which Alameda Research was the leading company that used the FTX reserves to manage the company’s financial services.
On 29 November, FTX exchange announced via a press release that the company resumed its salary process for all of its employees, who are working from different locations of the world.
John J. Ray III, the newly appointed CEO of the FTX exchange, said that the whole thing was possible with the approval from the court and now the company will release cash payments under the restricted limit which was set by the court approval.
“I am pleased that the FTX group is resuming ordinary course cash payments of salaries and benefits to our remaining employees around the world,” FTX CEO said.
FTX CEO also confirmed that the exchange will pay all the employees who are working for FTX company before and after the bankruptcy. But payment will not be released for former employees like Sam Bankman-Fried, and certain former execs including Gary Wang, Nishad Singh, and Alameda’s Caroline Ellison.
The current leaders of the FTX Exchange believe that its affected users can get a better amount of refunds after the buyout of FTX’s assets. Opposite of this, a few legal experts say that FTX’s services were available in multiple countries, So it may take year or more than years, more likely to the Mt.Gox exchange which is still under the pending zone.