The recent crash of FTX was havoc for the Crypto market. It set the entire market in complete turmoil and Cryptocurrencies were falling from their all-time high values. Following this incident, many top associates of the FTX resigned and left the firm behind. Even the CEO of the firm, FTX CEO Sam Bankman-Fried resigned after the crash. You can start your trading journey by using the right trading platform like Crypto Dezire App
But after this halt in the firm, the staff and contractors were left in a chaotic situation, and that too, without payments. This firm is now working towards releasing all the payments for the staff and contractors as well, making the conditions somewhat better for them! But, these payments have some exclusions too, and not everyone associated with it might get the same.
The firm is regaining its condition to a minimum extent. A recent announcement from the FTX is grabbing the attention of the community. This bankrupt Crypto firm has announced that it will resume general salaries, cash payments, along with benefits. All these will be for their few available staff worldwide.
But, there are certain aspects concerning this announcement. The Ex-CEO, Bankman-Fried will be an exemption from this salary release. Also, other ex-employees like Nishad Singh and Gary Wang are in the exemption portion. And, Alameda’s former associate, Caroline Ellison, will not get any share of this recent salary release.
The announcement of the salary release was made by the current CEO of the firm, John Ray III on 28th November. He is an insolvency professional and is looking for ways to bring back FTX to normal condition.
In addition, he also wants to revive the affiliate companies of the FTX. He is navigating the team and all the affiliates through the Bankruptcy court case.
He says that after the court approved their motion and after international cash management, the firm will resume salaries now. The entire team of the firm will now resume their cash payments to their few employees. These staff will also get benefits apart from salaries.
He further adds that it is ready to make payments in cash to all the vendors outside the U.S. and to the service providers as well. This is an important step to preserve the functioning of the firm. But, there are certain limitations by the Bankruptcy court.
The announcement of releasing salary is done after 10 days of the Debtors filing a motion in the Bankruptcy court. In this appeal, they mentioned that the firm should pay them compensation. Also, certain benefits to their staff and contractors should be released.
But, in this appeal, they excluded the payments for former associates, who resigned after the crash. The FTX filed the Bankruptcy petition on 11 November and after that, it stopped its functions. For that period of around 3 weeks, these staff and foreign contractors had to go about without any salary.
So, as per the recent announcement, they will receive payments that are equal to those 3 weeks of halt. Ray acknowledges the fact that employees had to go through financial hardships for this delay. Also, he thanked them for not leaving hope and supporting the firm throughout these days.
The relief amount will not be for all the employees of the firm but has some limitations to it. Around 101 affiliates of the FTX will receive this benefit and the vendors as well. But, the subsidiaries of the FTX and all its related firms will not receive these benefits.
The headquarters of this firm is in the Bahamas. There too, the employees and all its contractors will receive the salaries. But the employees associated with the firm’s Digital Markets will receive none.
Though the present CEO expects all the matters to be solved quickly, the firm may take a lot more time than expected. As the condition of the firm is pretty complex, it may even take many years to come out of the collapse.