Bonus pay of $1.6 million will be given to more than 30 employees of the bankrupt cryptocurrency exchange Voyager.
In bankruptcy court this week, Voyager received approval for its request to award key staff. As Voyager restructured its finances, the company said it needed to reward its top employees to retain them. A Key Employee Retention Plan (KERP) will provide $6 million to 34 employees out of 328.
In a court filing, the company’s lawyers said that these employees help the business in important ways, such as with accounting, IT infrastructure, legal services, etc.
Whether there’s a sale or a reorganization, key employees are needed to operate a stand-alone business and deliver value to customers. Maintaining key employees is the key to success. “
What were the workers’ demands?
Voyager made a bonus request of $1.9 million for 38 employees, which is standard practice in bankrupt companies that hire workers to clean up their mess. There was an objection from the Official Committee of Unsecured Creditors.
It criticized Voyager for giving bonuses to employees while not compensating customers for their losses. It also said that the company hadn’t shown proof that employees would quit without the extra money.
Users have started to request their cryptocurrency once the news broke, which may be good news for Voyager employees.