Creditors of Voyager Digital File Petition Over Retention Proposal

Creditors of Voyager Digital File Petition Over Retention Proposal
  • Voyager Digital filed an application with the United States Bankruptcy Court.
  • The creditors of the exchange, however, did not agree with the plan.

The Unsecured Creditors Committee of Voyager Digital Holdings has filed a petition objecting to the business’s plan to retain its workers by offering them financial incentives to remain with the company.

To retain 38 personnel considered essential to the smooth running of the exchange, Voyager Digital filed an application with the United States Bankruptcy Court for the Southern District of New York on August 2 seeking approval of the Key Employee Retention Plan (KERP).

Already Well-compensated Employees

The creditors of the exchange, however, did not agree with the plan. The creditors’ objections to the KERP and the accompanying relief disbursements were detailed in a motion submitted on Friday. 

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.”

Creditors also claimed that Voyager did not provide sufficient evidence to support the retention strategy. Creditors also claimed there was little proof that retained workers intended to leave. In addition to this, the petition by creditors claimed that the current crypto winter enables the company to employ a pool of people who are now accessible. 

Billionaire investor Mark Cuban was hit with a lawsuit earlier this month for allegedly advertising Voyager products. A legal firm sued Cuban in civil court and asked for a trial by jury. Cuban was sued for allegedly using his expertise to convince unsuspecting investors to deposit their funds into Voyager.

The cryptocurrency exchange declared bankruptcy in July, citing over 100,000 creditors. As the company sees it, this is all part of a larger recovery strategy to restore value for its clientele.

Recommended For You:

Billionaire Mark Cuban Sued by Voyager Digital Investors

A crypto enthusiast. Loves to write. Gives full dedication to every task assigned. Specializes in delivering on tight deadlines. An animal lover, especially dogs.