Bankrupt cryptocurrency exchange Voyager to pay $1.6m bonus to key staff
More than 30 employees at the bankrupt cryptocurrency exchange Voyager will receive $1.6 million in bonus pay as the company scrambles to return customers' funds frozen on its platform.
Bankruptcy Court judges in southern New York approved Voyager's request to award key staff this week. Voyager argued it needed to award top workers as a way to keep them as the company restructures its financial assets. Under the Key Employee Retention Plan , 34 out of 328 employees will be paid an extra 22.5 per cent of their annual salaries which amounts to $1.6 million.
These employees provide services that are considered essential for the company, such as accounting, IT infrastructure, legal, and the like."[Voyager] employees have legitimate reasons to be concerned about their long- term employment status given the ongoing sale process and uncertainty of future operations," the company's lawyers said in court filings"And key employees are necessary regardless of whether there is a sale or a stand-alone reorganization.
Voyager had asked judges to approve a total of $1.9m in bonus pay for 38 employees, and this kind of request is standard stuff for businesses that have gone broke and need some kind of workforce to clean up the mess. That said, the Official Committee of Unsecured Creditors appointed to represent those who are owed money objected.
"At a time when thousands of creditors struggle to pay basic personal expenses due to the Debtors' flawed business model, [Voyager] now seek to pay bonuses to their already well-compensated employees…It is difficult to understand how the KERP 'is necessary and appropriate to avoid costly disruptions to the [Voyager's] business and allow the Debtors to resume operations post-emergency,' as the Debtors allege," it said in court...
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