Creditors of bankrupt crypto lender Voyager Digital say the company should be looking to slash its workforce rather than pay its employees “retention awards,” according to a motion filed in a New York court.
The Official Committee of Unsecured Creditors of Voyager Digital says that it “vehemently opposes” the company’s plan to use $1.9 million of its funds to pay 38 workers to not seek alternative employment.
Voyager’s legal team claims that, due to the recent market downturn, employee stocks are next to useless and it must therefore use a cash-based scheme to keep them onboard and avoid a mass exodus that could compromise the firm’s restructuring process.
But the Committee disagrees and argues that the company should instead be looking to slash its workforce
“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,” said the filing.
“And despite customer heartaches, many of which are set forth in dozens of letters filed on the docket, the Debtors have taken no measures to reduce headcount. This stands in stark contrast to how some of the most prominent cryptocurrency companies have reacted since the start of the crypto winter.”
The Committee also points out that, due to the healthy state of the crypto job market, replacing lost employees shouldn’t be too big a task.