Voyager creditors oppose $1.9M employee retention proposal

Voyager creditors oppose $1.9M employee retention proposal

Voyager Digital Holdings has filed a motion of objection to the proposal to retain its employees by giving them monetary incentives for their continued employment.

Voyager Digital filed a petition to the United States Bankruptcy Court, Southern District of New York on August 2 to approve the Key Employee Restention Plan (KERP). This plan aims to distribute $1.9million to 38 key employees who are essential to the operation of the exchange.

The proposal was rejected by the creditors of the exchange. The creditors filed a motion on Friday expressing their opposition to the proposed KERP. They wrote:

“At a moment when thousands of creditors are struggling to pay basic personal costs due to the Debtors flawed business model, Debtors now seeks to pay bonuses their already well-compensated staff.”

Voyager could not provide enough reasons to justify the retention plan, according to creditors. The creditors also claimed that there wasn’t enough evidence to prove that employees in the retention plan were planning to resign.

Creditors also filed a filing stating that the current crypto-winter allows the company to recruit from a pool talent. They wrote that “a number of professionals who have been terminated in the last few years could be hired to fill these roles, given the industry’s recent layoffs and reductions.”

Related: Voyager bankruptcy causes investors to lament potential loss of’millions’

Mark Cuban, a billionaire, was sued earlier this month for his promotion of Voyager products. A law firm brought a civil lawsuit against Cuban, and requested a jury hearing. According to the lawsuit, Cuban used his knowledge to convince investors to put their savings into Voyager.

The crypto exchange filed for bankruptcy in July. It stated that it owes more than 100,000 creditors money. The firm claims that this is part of a plan to recover value for its customers.

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