Cointime

Download App
iOS & Android

FTX Group Resumes Salary Payments but There’s a Catch: Report

FTX Payroll will start remunerating employees for their work again, with certain exceptions for former staff members in two regions.

It’s been nearly three weeks since FTX first froze withdrawals on the 11th of November and initiated bankruptcy proceedings.

However, clients and creditors of the battered exchange have not been the only ones left paying for Sam Bankman-Fried’s mistakes out of their own pocket.

3 Weeks of Uncertainty

According to attorneys involved in the ongoing bankruptcy case, FTX was run as a “personal fiefdom,” with many assets going unaccounted for. Presumably, the attorneys were unaware of the funds missing from employees’ wallets. The personnel in question continued working despite suffering an interruption in their scheduled payments.

It will be interesting to see if this interruption will be the cause of any future litigation between FTX employees and the now-bankrupt firm. Although it’s possible the contracts that the employees signed allowed for periods of delayed payment due to “extraordinary circumstances,” they may feel they still have a shot at winning against the disgraced former exchange in court.

No Payouts for Bahamian and Aussie Employees Yet

The return to scheduled payments of salaries was announced yesterday evening by John Ray III, FTX’s new CEO.

“I am pleased that the FTX group is resuming ordinary course cash payments of salaries and benefits to our remaining employees around the world. FTX also is making cash payments to selected non-U.S. vendors and service providers where necessary to preserve business operations (…).

We recognize the hardship imposed by the temporary interruption in these payments and thank all of our valuable employees and partners for their support.”

It’s unclear from this statement what will happen to the money owed to non-U.S. vendors in non-business critical roles. Furthermore, this announcement does not apply to employees of FTX Digital Markets – FTX’s Bahamian subsidiary – and FTX Australia, who are not protected by the provisions of chapter 11 bankruptcy and are involved in separate bankruptcy procedures in their respective jurisdictions.

Furthermore, the salaries of certain current and former executives will not be resumed, which is an understandable move considering their responsibility for the fiasco.

However, as previously mentioned, this could also leave FTX open to future litigation from the excluded executives. Among those being passed up for regular payments are SBF and Alameda Research’s Caroline Ellison, as well as co-founder Gary Wang and Director of Engineering Nishad Singh.

FTX
Comments

All Comments

Recommended for you

  • How Crypto Could Help Open-Source AI Reach Its Potential

    The impact of artificial intelligence (AI) is being felt across various sectors, including drug discovery, workforce productivity, and personalized content on streaming platforms like Netflix. Experts predict that the AI industry will grow by 40% annually and reach a trillion-dollar market by 2030, potentially transforming industries on an unprecedented scale. The use of cryptocurrency could play a crucial role in enabling open-source AI to overcome current limitations and reach its full potential.

  • ECB board member Patsalides warns Trump's tariff plan could lead to stagflation in Europe

    Christodoulos Patsalides, a member of the European Central Bank's board, warns that if US President-elect Donald Trump follows through on his threatened trade tariffs, the European economy could ultimately fall into stagflation. "Trade tensions are escalating," said the Cyprus Central Bank governor on Thursday in Nicosia. "If trade restrictions become a reality, the outcome could be inflation, economic recession, or worse, stagflation." He said that although there is room for further lowering of borrowing costs, it should be done "at a stable pace and magnitude."

  • Scam Sniffer: Crypto-Malware "Meeten" Renamed to "Meetio", Reminding Community to Be Vigilant

    Scam Sniffer posted on X platform, stating that the crypto conference malware "Meeten" has been renamed to "Meetio". The community is warned to be vigilant, as the renamed application is just a "disguise" and still poses a security threat.

  • Bankless Co-founder: The market has entered the beginning of the second half of the crypto bull market

    Ryan Sean Adams, co-founder of Bankless, posted on X platform stating that the current market has entered the beginning stage of the second half of the crypto bull market.

  • Elon Musk appointed by Trump to lead advisory board on government efficiency and restructuring

    President-elect Donald Trump has appointed Elon Musk and Ramaswamy to lead an advisory board called the "Department of Government Efficiency." The board aims to reduce government bureaucracy, cut wasteful spending, and restructure federal agencies. Rep. Marjorie Taylor Greene will chair a House subcommittee on "DOGE" to recommend executive actions to reduce waste and provide savings for taxpayers. Musk and Ramaswamy are reportedly creating a smartphone app for Americans to file taxes for free, causing shares of tax filing services H&R Block and Intuit to drop. However, the commission has received criticism from Senator Elizabeth Warren.

  • Curve: Market leverage demand surged after Trump's election, and protocol revenue grew rapidly

    On November 21st, Curve Finance stated that the crypto industry has experienced a large-scale increase after Trump recently won the US election. Key stocks such as MSTR and COIN have been reevaluated, and Bitcoin has approached the $100,000 mark. The demand for leverage has led to an increase in DAO's weekly income, rising from an average of $268,000 before Trump took office to $581,000 in the past week. Currently, the annual income allocated to veCRV holders is approximately $31 million, not including income from participating in voting incentives. As of today, including voting incentive bonuses, DAO has accumulated $554 million.

  • Paypal: There is a problem with the system at present, which may affect multiple products

     Paypal: Currently experiencing system issues that may affect multiple products; Merchants may be facing a higher number of errors.

  • Sui: The cause of the outage has been identified and a fix will be released soon

    Sui stated in a post on X that the Sui network is currently experiencing a malfunction and is unable to process transactions. The problem has been identified and a fix will be released soon. Earlier reports indicated that Sui Network stopped producing blocks 2 hours ago and has not yet resumed.

  • BCH breaks through $500

    market shows BCH has surpassed $500, currently trading at $521, with a daily increase of over 20%. The market is volatile, please be prepared for risk control.

  • Bitwise Bitcoin ETF's holdings exceed $4 billion

    Bitwise's official data update shows that as of November 20th, the BITB Bitcoin exchange-traded fund's position has reached 42,451.73 BTC, with a market value exceeding 4 billion USD, currently reaching 4,003,716,971.36 USD.