FTX Trading and its affiliates will resume paying wages to employees globally

According to a press announcement on Monday, cryptocurrency exchange FTX Trading and its affiliates will resume paying wages to employees worldwide and some non-American contractors and service providers.

FTX to resume paying wages

“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,” said John J. Ray III, FTX’s newly appointed CEO who had managed the liquidation of Enron in 2001.

The court granted FTX relief at a hearing last week, enabling the functioning of a new global cash management system and payments to its essential vendors. The debtors, FTX, and its affiliates are not permitted to pay any amount of the outstanding employee salary exceeding $40,000 in total, the court stated in a hearing order document published on November 22.

However, as these businesses were exempt from Chapter 11 of the U.S. bankruptcy code, this relief did not apply to the employees and contractors of FTX Digital Markets, FTX Australia, and FTX Express, which had offices in the Bahamas, Australia, and the United States, respectively.

An anonymous FTX Japan executive told local network NHK last week that the company plans to begin withdrawals to Japanese customers by the end of 2022.

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