FTX Staff Terminated; adds to list of people the Company owes

By Shanieka Smith

Staff Writer

#TheBahamas, February 7, 2023 – Several employees of FTX Digital Markets have been made redundant.  The joint provisional liquidators have also indicated that the company is not in a financial position to make redundancy payments. Instead, employee redundancy payments will be considered a “preferred claim” against the company.

The termination letter showed that the employees are terminated with effect from January 31. The company reportedly had some 40 Bahamian staff.  It was unclear, however, how many staff members had been terminated.

Employees’ salaries for the last pay periods had been paid out in full, as such, they will have no claim against the company for salary during this period.

The Supreme Court of The Bahamas placed the FTX Digital Markets into provisional liquidation last year.  This came after the then CEO, Sam Bankman-Fried face federal charges, including wire fraud, securities fraud, and money laundering – all in relation to the collapse of FTX, which sank into bankruptcy last November.  Bankman-Fried pleaded not guilty last month.