The crypto exchange FTX and its related companies have asked a U.S. bankruptcy court for protection. On Monday, FTX said that most of its subsidiaries would continue to pay salaries and benefits to employees around the world.
The relief includes cash payments for both the time before and after the bankruptcy petition, up to the limits set by the Bankruptcy Court.
“With the Court’s approval of our First Day Motions and the work being done on global cash management, I am happy that the FTX group is resuming normal cash payments of salaries and benefits to our remaining employees around the world,” said Chief Executive John Ray in a statement.
Related:Â BlockFi, a cryptocurrency lender, has filed for bankruptcy and blames FTX exposure.
At the troubled cryptocurrency exchange’s first bankruptcy hearing last week, lawyers said that former CEO Sam Bankman-Fried ran FTX like it was his “personal fiefdom.” They also talked about ongoing problems like hacks and large amounts of missing assets.
On November 11, FTX and its U.S. unit, crypto trading firm Alameda Research, and about 130 other affiliated companies filed for bankruptcy in the U.S.
Fears about the future of the crypto industry have grown as a result of the collapse, and since then, a number of crypto companies have been getting ready for the fallout.
BlockFi filed for Chapter 11 bankruptcy protection earlier on Monday. This was because the crypto lender’s business was hurt by its exposure to FTX.
