Voyager Digital Holdings’ unsecured creditors committee made a move to challenge the firm’s proposal to keep employees by paying monetary rewards for staying with the company.
On August 2, Voyager Digital filed a lawsuit in the United States Bankruptcy Court in the Southern District of New York to approve its Key Employee Retention Plan (KERP), which aims to distribute $1.9 million to 38 key employees deemed crucial. stock market transactions.
However, the stock exchange’s creditors did not agree with the offer. In a motion submitted on 19 August, creditors raised their objections to the proposed KERP and related aid grants. They wrote:
“At a time when thousands of creditors are struggling to pay basic personal expenses due to the Borrowers’ flawed business model, Borrowers are now trying to pay bonuses to their already well-paid employees.”
Creditors also argued that Voyager failed to give sufficient reason to justify its retention plan. Additionally, creditors said there wasn’t enough evidence to show that employees who were part of the retention plan actually planned to resign.
Apart from these, the filing by creditors also noted that the current crypto winter allows the firm to recruit from a talent pool that is currently available. “Given the recent industry cuts and layoffs, many recently fired professionals could fill their roles,” they wrote.
Earlier this month, billionaire Mark Cuban was sued for promoting Voyager products. A law firm filed a civil suit against Cuban and requested that the case be heard by a jury. The lawsuit alleged that Cuban used his experience to trick investors into investing their life savings in Voyager.
In July, the crypto exchange filed for bankruptcy, stating that the company owes more than 100,000 creditors. According to the firm, the move is part of a recovery plan that aims to add value to its customers when implemented.