Beleaguered crypto exchange FTX says most of its subsidiaries are resuming salary and benefit payments to employees after being interrupted during the company’s insolvency crisis.
In a statement, FTX’s new CEO John J. Ray III says that ordinary course payment will also resume for some of the firm’s non-US contractors and service providers to preserve business operations.
Ray says the company acknowledges the inconvenience caused by the interruptions in payments, and thanks employees and partners for their support.
“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.
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. We recognize the hardship imposed by the temporary interruption in these payments and thank all of our valuable employees and partners for their support.”
The relief does not cover all employees, however. The statement says employees and contractors of FTX Digital Markets in the Bahamas and those of FTX Australia are not protected by chapter 11 cases in the US.
The announcement comes just as crypto lending firm BlockFi files for bankruptcy citing its exposure to FTX. BlockFi says that part of its restructuring efforts will involve attempts to recover all obligations due to it by counterparties including FTX.
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