Voyager creditors oppose $1.9M employee retention proposal

Voyager Digital Holdings’ board of unsecured creditors has filed a motion challenging the company’s proposal to retain its employees by paying them incentives to stay with the company.

August 2, Voyager Digital submitted The U.S. Bankruptcy Court for the Southern District of New York to approve a Key Employee Retention Plan (KERP) intended to distribute $1.9 million to 38 key employees deemed essential to the exchange’s operations. I filed.

However, the exchange’s creditors opposed the proposal.in motion submitted On Friday, creditors challenged the proposed KERP and related relief grants. they wrote:

“At a time when thousands of creditors are struggling to pay basic personal expenses due to flaws in the debtor’s business model, the debtor is now offering bonuses to already well-compensated employees. I am trying to pay for

Creditors also argued that Voyager failed to present sufficient reasons to justify the retention plan. He said there was not enough evidence to show.

Aside from these, filings prepared by creditors state that the current crypto winter will allow companies to hire from the pool of talent currently available. And given the layoffs, a bevy of recently laid-off professionals could fill their roles,” they wrote.

Related: Investors lament they could lose ‘millions’ in Voyager bankruptcy

Earlier this month, billionaire Mark Cuban was sued for promoting Voyager products. A law firm filed a civil lawsuit against Cuban, demanding a jury trial. The lawsuit alleges that Cuban used his own experience to trick investors into investing his savings in Voyager.

In July, the cryptocurrency exchange filed for bankruptcy, saying the company owed more than 100,000 creditors. It is part of a recovery plan that aims to