Creditors of cryptocurrency lender Voyager Digital Holdings are objecting to the company’s request for funds to payout bonuses to staff, saying the employees are already “well-compensated.”

See related article: Court allows Voyager Digital to return US$270 mln in custodial account to customers

Fast facts

  • The creditors’ objection came after Voyager, which filed for Chapter 11 bankruptcy in July, submitted a motion on Aug. 2 to ask a judge to approve an employee retention plan that cost up to US$1.9 million.
  • Creditors argued in their filing to the bankruptcy court in the southern district of New York on Friday that Voyager did not provide sufficient evidence to justify the retention awards nor did the company offer evidence that the 38 employees on the plan are at risk of resigning.
  • Voyager said in its motion that these employees are “exceptionally hard to replace in the marketplace because of their invaluable institutional knowledge and understanding of the cryptocurrency industry.”
  • Earlier this month, the court approved Voyager’s request to return to customers US$270 million held in a custodial account at Metropolitan Commercial Bank.

See related article: Crypto lender Voyager ordered to stop misleading claims over deposit insurance