Who will get paid , who won’t
•FTX has filed for bankruptcy and will not be paying Sam Bankman-Fried or any of the recently fired execs, nor their family members.
• This is in contrast to what Bankman-Fried said on November 10, before FTX filed for bankruptcy, when he stated that “after [making users whole], investors—old and new—and employees who have fought for what’s right in their career, and who weren’t responsible for any of the fuck ups” would be compensated.
• FTX has taken steps to distance itself from Bankman-Fried since the filing, including terminating him as CEO and suspending payments to certain employees with its proprietary cryptocurrency token.
FTX Files for Bankruptcy, Leaving Employees and Users in the Lurch
In a stunning turn of events, FTX has filed for bankruptcy and will not be compensating any of the recently fired execs or their family members. This is in direct contrast to what CEO Sam Bankman-Fried said on November 10, before FTX filed for bankruptcy, when he stated that “after [making users whole], investors—old and new—and employees who have fought for what’s right in their career, and who weren’t responsible for any of the fuck ups” would be compensated.
Since the filing, FTX has taken steps to distance itself from Bankman-Fried, including terminating him as CEO and suspending payments to certain employees with its proprietary cryptocurrency token. While it’s unclear exactly why FTX decided to file for bankruptcy after initially stating that it would make its users whole, the move is sure to leave many people angry and frustrated.
Bankman-Fried issued a statement on the matter, in which he said that he was “incredibly sorry” for what had happened and that he “failed to lead FTX to success.” He also said that he would be working with the bankruptcy trustee “to ensure that everyone who is owed money is paid in full.”
It remains to be seen how this will play out for FTX’s employees and users, but one thing is for sure: This bankruptcy filing is sure to cause a lot of pain and heartache for many people. Title:
12) Every penny of that–and of the existing collateral–will go straight to users, unless or until we've done right by them.— SBF (@SBF_FTX) November 10, 2022
After that, investors–old and new–and employees who have fought for what's right for their career, and who weren't responsible for any of the fuck ups.
On November 10, 2020, FTX Exchange—a cryptocurrency derivatives exchange—filed for bankruptcy in the U.S. District Court for the Southern District of New York. The filing came as a surprise to many because just days earlier, FTX CEO Sam Bankman-Fried had stated that the company would make its users whole after a series of bad trades resulted in heavy losses. Now, it seems that those losses will be borne by the employees and investors who put their trust in FTX.
In its bankruptcy filing, FTX listed assets of between $10 million and $50 million, and liabilities of $1 billion to $10 billion. The company also said that it has “more than 200” creditors who are owed money. Among those creditors are former employees who are owed wages and benefits, as well as investors who are owed money. It’s unclear exactly how much money each creditor is owed, but it’s clear that there are a lot of people who are going to be left empty-handed by this bankruptcy filing.
The answer to this question is twofold: first and foremost, the employees and investors who are owed money by FTX are going to be affected. Many of these people have put their trust in FTX and its CEO, only to be let down in a big way. It’s still early days, but it seems likely that some of these people will never see the money they’re owed. Secondly, the FTX community at large is going to be affected by this development. For many people, FTX was their introduction to the world of cryptocurrency derivatives trading; now, that experience has been tainted by this bankruptcy filing. It remains to be seen how this will affect FTX’s reputation going forward. It has been made clear that Sam Bankman Fried and his team will not receive any monetary compensation during this bankrptcy at all.
This is a developing story, and it’s still unclear exactly how everything is going to play out. What is clear, however, is that this bankruptcy filing is going to have a big impact on a lot of people’s lives. Our thoughts go out to all those who are affected by this news.
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