Troubled crypto firm Voyager to award .6 million in bonuses to key employees (report)

Troubled crypto firm Voyager to award $1.6 million in bonuses to key employees (report)

Troubled crypto firm Voyager to award .6 million in bonuses to key employees (report)

One of the hardest hit companies in the crypto space due to the bear market – Voyager Digital – is reportedly paying out $1.6 million in bonuses to its top 34 employees. The company explained that these workers are part of the accounting, legal and IT infrastructure units.

Two weeks ago, a lawsuit alleged that US billionaire Mark Cuban lured inexperienced investors to invest in Voyager Digital’s ‘Ponzi Scheme’. For its part, the company asked the court to dismiss the lawsuit against the contractor.

Hard Worker Awards

Earlier this month, Voyager Digital asked bankruptcy court judges to approve a total of $1.9 million in bonuses that the company could distribute to 38 of its key employees.

“At a time when thousands of creditors are struggling to pay basic personal expenses due to debtors’ flawed business model, Voyager is now looking to pay bonuses to their already well-paid employees,” the entity told Reuters. ‘era.

According to recent coverage, authorities allowed the crypto brokerage to boost 34 of its 328 employees with $1.6 million in bonuses. These people will receive an additional 22.5% of their annual salary. They are considered essential for the operations of the company since they manage its accounting, legal and IT departments.

“Voyager employees have legitimate reasons to be concerned about their long-term employment status given the ongoing sale process and the uncertainty of future operations,” the organization’s lawyers said in filings. filed in court.

The lawyers added that giving extra money to the most important members of the team is a vital step since these professionals should guide the company’s rescue plan.

The Problems of Voyager and Mark Cuban

The core of Voyager Digital’s troubles was its relationship with struggling crypto hedge fund Three Arrows Capital. In early July, due to 3AC’s bad debts, the company halted transactions, deposits and withdrawals on its platform.

Days later, the company and its two subsidiaries – Voyager Digital LLC and Voyager Digital Holdings – filed for Chapter 11 bankruptcy with the Southern District of New York. CEO Stephen Ehrlich raised hopes that the move could give customers additional protection and secure their assets. So far, the company has returned nearly $220 million, or 80% of user funds.

Mark Cuban – the owner of NBA team, The Dallas Mavericks – also got involved in the saga. A lawsuit alleged that he and Stephen Ehrlich urged young, inexperienced investors to invest their life savings in the company by repeatedly promoting it. The plaintiffs went further, arguing that the two men instigated the individuals to distribute all their savings in the entity’s “unregulated products”.

Voyager’s lawyers were quick to respond and asked the court to stop the lawsuit against Cuban and Ehrlich. The lawyers pointed out that filing for bankruptcy gives the company and key figures linked to it immunity from similar court cases.

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