In the latest reports Voyager Digital Holdings’ committee of unsecured creditors has already filed a motion to oppose the Company’s proposal to keep its employees by paying them monetary awards for staying in the firm.
On August 2, Voyager filed a motion to the United States Bankruptcy Court in the Southern District of New York with the intention of pushing for the approval of the Key Employee Retention Plan (KERP) that desires to distribute $1.9 million to 38 key employees who were believed to be critical to the operations of the exchange.
Creditors wrote that the employees are “already well-compensated” while the creditors struggle to pay their expenses. Nonetheless, the exchange’s creditors disagreed with that proposal. In a motion filed on August 19, the creditors laid out their objections to the proposed KERP and its other related relief grants. They wrote:
“At a time when thousands of creditors struggle to pay basic personal expenses due to the Debtors’ flawed business model, the Debtors now seek to pay bonuses to their already well-compensated employees.”
The creditors also insisted that Voyager was unable to give adequate reason to justify the retention plan. Moreover, the creditors stated that there is not enough evidence given to prove that the employees who were a part of the retention plan are truly wishing to resign.
Apart from all these, the filing made by the creditors also noted that the current cryptocurrency winter enables the company to hire from a pool of talent who are currently available. They wrote:
Buy Bitcoin Now“Given the recent reductions and layoffs across the industry, a bevy of recently-terminated professionals could fill their roles.”
Earlier in the month, billionaire Mark Cuban was sued for promoting Voyager products. A law company filed a civil suit against Cuban and demanded a jury hearing for the case. The lawsuit insisted that Cuban used his influence and experience to dupe investors into putting their life savings at Voyager.
In July, the crypto exchange filed for bankruptcy, mentioning that the company owes money to over 100,000 creditors. Based on a statement by the company, this move is part of a recovery plan that strives to return value to its clients when implemented.
