Voyager Digital’s trustee, committee objects to employee retention plan

Chicago, Aug. 19 – Voyager Digital Ltd.’s key employee retention plan was objected to on Friday by both the official committee of unsecured creditors and the trustee for the case, according to objections filed with the U.S. Bankruptcy Court for the Southern District of New York on Friday.

The $1.9 million plan would include 38 participants and amounts would be paid in two installments.

The committee objects on the basis of the unlikelihood that the plan will retain any participants, as only 12 of the 350 employees in the company have resigned since the bankruptcy filing.

The downturn in cryptocurrency firms additionally means that suitable replacements abound if participants do resign and also that the participants would be challenged to find other suitable jobs for their specialty talents in the current atmosphere.

Additionally, trading on the company’s app has been suspended, essentially – leading the committee to believe that fewer employees are generally necessary to run a company that is currently not fully functional.

William K. Harrington, Region 2 trustee, also objects.

His objections have to do with the list of participants provided, in redacted form, as not substantial enough for full evaluation.

Moreover, the bonuses are not currently tied to any identifiable metric to allow the parties to evaluate whether they are reasonable.

Voyager Digital is a cryptocurrency broker based in New York. The company filed bankruptcy on July 5 under Chapter 11 case number 22-10945.

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