Bankrupt FTX has announced it is planning to start cash payments, salaries, and other perks to its staff and contractors across the world. The collapsed crypto exchange had paused payments after filing a bankruptcy suit in the second week of November.
According to FTX CEO John Ray III, it got the court’s approval for this step and FTX group will resume payment of salaries and benefits accordingly.
Ray also added that FTX will pay many non-US vendors and service providers to run business operations within the limits set by the bankruptcy court.
FTX debtors had moved the bankruptcy court on November 19 and sought payments and prayed exclusion of FTX founder Sam Bankman-Fried, Nishad Singh, Caroline Ellison, and Gary Wang from the payments.
However, the payment resumption will not bind all FTX group companies including FTX Australia and it’s subsidiary FTX Express as they are under a different jurisdiction.
Reports said the FTX liquidator’s court filing has made clear that nothing from the liquidation of FTX assets will be paid to SBF, his associates, or family relations. The associates are Gary Wang, Caroline Ellison, and Nishad Singh. This implies the disgraced billionaire SBF cannot expect anything from the ongoing liquidation of assets led by the new CEO.