Voyager Digital is making headlines again following the latest reports. It’s been revealed that the company will pay $1.9 million in retention bonuses to key staff members to ensure the beleaguered crypto lender can continue operating through bankruptcy proceedings.
Voyager Digital makes headlines due to bonuses to staff members
It’s been just revealed that a New York bankruptcy court has given embattled crypto brokerage Voyager Digital the green light to pay retention bonuses to key staff members.
The firm filed a motion with the United States Bankruptcy Court on Aug. 2 seeking approval for its Key Employee Retention Plan (KERP).
it’s important to note the fact that this entailed $1.9 million worth of payments to 38 key employees that have been identified as crucial to the exchange’s ongoing operation.
Cointelegraph notes that creditors of the firm, which filed for bankruptcy in July 2022, had initially opposed Voyager’s KERP payments in a court filing on Aug. 19. They were claiming that payments to investors should be prioritized ahead of “well-compensated” employees.
Court filigs noted that an agreement was reached between Voyager and the committee of creditors to drop the opposition to the proposed KERP on certain conditions.
The online publication mentioned above notes the following:
“Chief among these is the implementation of operational cost-cutting measures to save $4.6 million. The KERP payments are worth 22.5% of the eligible employees’ annual salaries.”
Voyager said that the 38 employees are critical to business operations,.
They perform the following:
“essential accounting, cash and digital asset management, IT infrastructure, legal and other critical functions for the Debtors.”
The same online publication notes that the court filing also addressed concerns raised by the U.S. Trustee’s Office.
This oversees the administration of bankruptcy cases and private trustees as a component of the Department of Justice.
We suggest that you check out the complete article posted by Cointelegraph in order to learn all avaialbe details.