![[US] FTX will resume salary payments following its collapse](http://gpa.net/cdn/shop/articles/bigstock-Ftx-Token--The-Collapse-Of-Th-465505859_1200x.jpg?v=1669750325)
Crypto exchange FTX and its affiliated companies, which have filed for U.S. bankruptcy court protection, announced in a November 28 statement that most subsidiaries would resume ordinary course payment of salary and benefits to employees worldwide, Reuters reports.
The relief reportedly includes cash payments with respect to both pre-petition and post-petition periods, subject to limits established by the orders of the Bankruptcy Court.
"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," Chief Executive John Ray said in a statement.
At the embattled crypto exchange's first bankruptcy hearing last week attorneys said FTX was run as a "personal fiefdom" of former CEO Sam Bankman-Fried and reportedly detailed ongoing challenges such as hacks and substantial missing assets.
On November 11, FTX filed for U.S. bankruptcy protection, along with its U.S. unit, crypto trading firm Alameda Research and nearly 130 other affiliates.
The collapse has enflamed fears about the future of the crypto industry and several crypto firms have since been braced for the fallout.
Earlier on November 28, BlockFi reportedly filed for Chapter 11 bankruptcy protection, after the crypto lender was impacted by exposure to FTX.
Source: Reuters
(Links and quotes via original reporting)
Crypto exchange FTX and its affiliated companies, which have filed for U.S. bankruptcy court protection, announced in a November 28 statement that most subsidiaries would resume ordinary course payment of salary and benefits to employees worldwide, Reuters reports.
The relief reportedly includes cash payments with respect to both pre-petition and post-petition periods, subject to limits established by the orders of the Bankruptcy Court.
"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," Chief Executive John Ray said in a statement.
At the embattled crypto exchange's first bankruptcy hearing last week attorneys said FTX was run as a "personal fiefdom" of former CEO Sam Bankman-Fried and reportedly detailed ongoing challenges such as hacks and substantial missing assets.
On November 11, FTX filed for U.S. bankruptcy protection, along with its U.S. unit, crypto trading firm Alameda Research and nearly 130 other affiliates.
The collapse has enflamed fears about the future of the crypto industry and several crypto firms have since been braced for the fallout.
Earlier on November 28, BlockFi reportedly filed for Chapter 11 bankruptcy protection, after the crypto lender was impacted by exposure to FTX.
Source: Reuters
(Links and quotes via original reporting)