The new CEO of the bankrupt cryptocurrency exchange FTX, John J. Ray III, announced that most FTX subsidiaries around the world had resumed normal course payment of salary and benefits to employees worldwide, as well as normal course payments to certain non-U.S. contractors and service providers.
The relief was announced by FTX Trading Ltd. and approximately 101 additional affiliated companies (FTX Debtors) and had no effect on any FTX.US employees or businesses.
On November 11, FTX filed for Chapter 11 bankruptcy protection in the US, and it will pay vendors and service providers in the normal course for all goods and services provided on or after that date. Cash payments are also allowed, subject to any limitations imposed before or after the bankruptcy filing date.
John J. Ray III said, “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.”
However, a few jurisdictions will be excluded. Employees or contractors of the FTX Digital Markets Ltd (FTXDM) are not eligible for relief in The Bahamas as it is the subject of a separate liquidation proceeding in The Bahamas and is not included in or protected by Chapter 11 proceedings in the States.
Also Read: FTX Collapse Triggers the Need for Crypto Regulation
Likewise, because FTX Australia Pty Limited and FTX Express Pty Ltd were separate entities, they were not included in Chapter 11 of the US Code.
