Crypto Exchange FTX Collapsed to Resume Wage Payments

Nov 28 (Reuters) – Crypto exchange FTX and its affiliates, which have sought U.S. bankruptcy court protection, said on Monday that most affiliates would resume normal payment of wages and benefits to employees around the world.

Relief includes cash payments for pre- and post-petition periods, subject to limits established by bankruptcy court orders.

“With the Court’s approval of our day one motions and ongoing work on global cash management, I am pleased that FTX Group is resuming regular cash payments of salaries and benefits to our remaining employees in the world,” said chief executive John Ray. said in a statement.

At the struggling crypto exchange’s first bankruptcy hearing last week, lawyers said FTX was run as a “personal fiefdom” of former CEO Sam Bankman-Fried and detailed the challenges. ongoing such as hacks and important missing assets.

On November 11, FTX filed for bankruptcy protection in the United States, along with its US unit, crypto trading firm Alameda Research, and nearly 130 other affiliates.

The collapse stoked fears about the future of the crypto industry and several crypto firms have been preparing for a fallout ever since.

Earlier Monday, BlockFi filed for Chapter 11 bankruptcy, after the crypto lender was hurt by exposure to FTX.

Reporting by Manya Saini in Bangalore; Editing by Sriraj Kalluvila

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