Cash payments are a part of the relief for both the pre-petition and post-petition periods.
The cryptocurrency exchange FTX and its related businesses, which have applied for bankruptcy court protection in the United States, announced on Monday that the majority of its subsidiaries will begin paying salaries and benefits to employees throughout the world in the normal process.
The remedy consists of cash payments with regard to both the pre-petition and post-petition periods, within the bounds set by the Bankruptcy Court’s instructions.
“I am glad that the FTX group is beginning ordinary course cash payments of wages and benefits to our surviving workers throughout the world,” said Chief Executive John Ray in a statement. “The Court’s acceptance of our First Day petitions and the work being done on global cash management.”
At the problematic cryptocurrency exchange’s first bankruptcy hearing last week, attorneys outlined ongoing difficulties including cyberattacks and substantial missing assets while claiming that FTX was governed as a “personal fiefdom” of former CEO Sam Bankman-Fried.
On November 11, FTX, its U.S. division, cryptocurrency trading company Alameda Research, and almost 130 additional affiliates filed for bankruptcy protection in the United States. Numerous crypto firms have since been preparing for a fallout as a result of the collapse, which has stoked concerns about the industry’s future.
BlockFi filed for Chapter 11 bankruptcy protection earlier on Monday after the cryptocurrency lender suffered losses due to exposure to FTX.
