By
Godfrey Benjamin
May 10th, 2024
The compensation comprises cash payments associated with both pre-petition and post-petition durations, which is in consideration for payments of pre-petitions totals based on the orders of the bankruptcy court.
FTX along with more than a hundred other associated firms has promised the continuation of ordinary course payments of salaries to employee base around the world. The announcement also claims to process ordinary course payments to some specific non-US contractors and service providers too.
According to Chief Executive Officer John Ray, by the court’s support of the First Day motions and the work conducted on international cash control, FTX was able to continue ordinary course cash payments of salaries and benefits to the remaining workforce. Ray went on to add that cash transactions to chosen non-US vendors and service providers are also being carried out to retain business operations.
The compensation comprises cash payments associated with both pre-petition and post-petition durations, which is in consideration for payments of pre-petitions totals based on the orders of the bankruptcy court.
The FTX Group will carry out payments for vendors and service providers in the standard course for all goods and services offered on or after the Chapter 11 filing window. FTX had applied for bankruptcy protection on November 11, when the infamous Founder Sam Bankman-Fried quit as the Chief Executive Officer of the firm.
In the Bahamas, which is where FTX has its headquarters, the compensation is offered specifically to workers or contractors of FTX debtors, and not to employees or contractors of FTX Digital Markets Limited. FTXDM Bahamas is the main entity of a native liquidation procedure and excludes the safeguarding by the Chapter 1 cases in the United States. The relief also is not applied to employees or contractors of FTX Australia Pty Limited and FTX Express Ltd, which is under the supervision of another distinct jurisdictional proceeding in Australia.
The news follows weeks after the company’s legislative counsel submitted a motion to offer relief plans and benefits to its employees and vendors. In the motion, FTX claimed that the firm would offer anything to the top executives of the firm like Sam-Bankman Fried, Gary Wang, Nishad Singh, and Caroline Ellison.
As the newly appointed CEO of FTX, Ray has made several efforts to alienate Bankman-Fried from the firm. So much so that Ray made a public announcement that the co-founder would not have any role in the company at present.
The collapse of FTX, which constituted one of the big, thriving crypto exchanges across the globe, exposed the dark side of crypto markets that otherwise stay hidden. While the world is still coming to terms with the downfall of this firm, crypto lender firm BlockFi has recently declared bankruptcy.
The crypto lender BlockFi has become the sector’s latest big operator to declare bankruptcy, as the fallout of the collapse of offshore cryptocurrency exchange FTX continues to spread.