NASSAU, BAHAMAS — Several employees of FTX Digital markets have been made redundant, with the joint provisional liquidators indicating that due to the company’s financial position, they are unable to make redundancy payments.
The liquidators have indicated that instead, employee redundancy payments will rank as a “preferred claim” against the company. It was unclear how many workers had been terminated up to press time.
The termination letter seen by Eyewitness News indicated that employees have been terminated with effect from January 31. The company reportedly had some 40 Bahamian staff.
FTX Digital Markets was placed into provisional liquidation by the Supreme Court of The Bahamas on November 10. Brian Simms KC, Kevin Cambridge, and Peter Greaves, were appointed Joint Provisional Liquidators by the Supreme Court following the collapse of the crypto exchange.
According to the letter, employee salaries for the first nine days of November 2022 (relating to the period prior to the Provisional Liquidation) were paid by the JPLs. For the period 10 November 2022 to 31 January 2023, whilst under the control of the Joint Provisional Liquidators, employees would have been paid by the JPLs and, therefore, have no claim against the company for salary and other emoluments during this period.