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HomeUncategorizedVoyager's creditors say 'no' to lender's 'retention' bonus for employees

Voyager's creditors say 'no' to lender's 'retention' bonus for employees

Source: AdobeStock / Rafael Henrique

Creditors of distressed cryptocurrency lenders Voyager Digital opposed the company’s motion to pay employees a “retention bonus”, saying the “headcount” should be reduced to cut costs.

The Official Committee of Unsecured Creditors, a group of Voyager customers, said in a recent legal filing,

“After thousands of creditors struggle to pay due to debtors’ flawed business models When it comes to basic personal expenses, debtors are now looking to their already well-paid employees.”

Creditors also criticized Voyager for not taking steps to reduce headcount and expenses, noting that some prominent crypto companies have already laid off 20 to 30 percent of their workforce to survive the current “crypto winter.”

“To be clear, the aforementioned companies are still in the normal course of business, and the debtor’s platform has been largely destroyed in the past seven weeks. Freeze, no or very few operations,” the creditor added.

Voyager asks federal judge to approve its $1.9 million in funding for Key Employee Retention Program (KERP) according to Aug. 2 According to the filing, the company claims to provide 38 employees with “basic accounting, cash and digital asset management, IT infrastructure, legal and other critical functions.”

However, the creditors indicated that Voyager had provided no evidence that the 38 employees were needed and that they were at risk of resignation.

“That’s because there is no such evidence – because the petition To date, only 12 of the debtor’s approximately 350 employees have resigned voluntarily,” the creditor claims.

Voyager is reportedly in the process of collapsing due to the collapse of a crypto hedge fund And filed for bankruptcy in July after suffering huge losses

Three Arrows Capital (3AC) and the broader cryptocurrency meltdown. The lender has since received “multiple bids over its assets” from cryptocurrency exchange

FTX and its parent company Alameda Study .

earlier This month, the cryptocurrency lender said it plans to “revert to the use” of U.S. dollar cash deposits by Aug. 11. Customers with cash in their accounts will be able to withdraw up to $100,000 within 24 hours, it said.

At the same time,

Celsius( CEL), another failed cryptocurrency lender last week released a report showing the company was short of about $2.8 billion in its cryptocurrency obligations to customers. The filing also showed that the restructuring process, along with other expenses, cost the company an average of $46 million a month.




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