Cryptocurrency exchange, FTX, recently filed for bankruptcy. The backend team filed for chapter 11 bankruptcy in a US district court on November 12.
The team’s improper handling of the user’s money was the primary cause of FTX’s demise. Alameda Research was a major organization using the exchange reserves to administer the company’s financial services, and the backend team was improperly transferring the user’s funds to its linked organizations.
The company resumed paying all of its employees, who are based all over the world, on November 29, according to a release from exchange.
The FTX exchange’s newly appointed CEO, John J. Ray III, stated that the court’s approval made the entire process possible. The company will now distribute cash payments within the restricted limit that was established by the court’s consent.
The CEO commented, “I am glad that the FTX group is continuing ordinary course reimbursements of salaries and benefits to our surviving employees around the world.”
The exchange will compensate all the workers who were employed by FTX before and after the bankruptcy, according to the CEO.
However, payment will not be made to former workers like Sam Bankman-Fried or some former executives including Nishad Singh, Gary Wang, and Caroline Ellison of Alameda.
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