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Voyager lenders reject lender’s “retention” bonuses for employees

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News Tech: Voyager Digital’s problematic creditors have opposed the company’s proposal to give staff “retention rewards,” arguing that it should instead reduce “headcount” to cut costs.

“The Debtors now wish to pay bonuses to their already well-compensated workers at a time when thousands of creditors struggle to meet basic personal needs owing to the Debtors’ defective business model.”

A group of Voyager clients known as the Official Committee of Unsecured Creditors recently said in court documents that:

Creditors also attacked Voyager for failing to take action to cut costs and manpower, pointing out that other well-known cryptocurrency businesses have fired anywhere from 20% to 30% of their staff in an effort to survive the present “crypto winter.”

Only 12 of the approximately 350 workers of the Debtors have willingly left their positions since the Petition Date, according to the creditors, “and that is because no such proof exists.”

As was previously mentioned, Voyager sought bankruptcy protection in July after incurring significant losses as a result of the collapse of the cryptocurrency hedge fund Three Arrows Capital (3AC) and the wider crypto market crash. The cryptocurrency exchange FTX and its parent firm Alameda Research have subsequently made “several proposals for its assets in excess of an earlier offer” to the lender. The cryptocurrency lender stated earlier this month that by August 11 it will “restore access” to cash deposits made in USD. Customers who have money in their accounts can withdraw up to USD 100,000 in a 24-hour period, according to the statement.

Another bankrupt cryptocurrency lender, Celsius (CEL), revealed in a report last week that it is about USD 2.8 billion short on its customer’s cryptocurrency liabilities. The report also revealed that the corporation spent an average of USD 46 million per month on the restructuring process and related costs.

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