Celsius Network eyes $2.96 million key employee retention plan

By Sarah Lizee

Olympia, Wash., Oct. 12 – Celsius Network LLC is seeking approval of an up to $2.96 million key employee retention plan for 62 non-insider employees, according to a motion filed with the U.S. Bankruptcy Court for the Southern District of New York.

The debtor said it needs a motivated and engaged workforce with institutional knowledge and understanding of the cryptocurrency industry.

“Historically, the debtors’ employees have been the backbone of their business, and with recent management changes, the debtors’ employees are more vital than ever,” the company said.

As previously reported, the company recently announced the resignation of co-founder and chief executive officer, Alex Mashinsky, and the appointment of Chris Ferraro as chief restructuring officer and interim CEO.

“Without an incentive to remain with the debtors throughout the Chapter 11 process, these key employees will likely seek alternative employment opportunities,” Celsius said, adding that since the petition date, 102 employees have resigned, and some continue to receive offers to join competitors for significantly higher compensation.

“Thus, the debtors require the ability to offer competitive compensation or risk a ‘brain drain’ in a vigorously competitive and highly technical industry,” the company said.

A hearing on approval of the KERP is scheduled for Nov. 1.

The Hoboken, N.J.-based cryptocurrency lending platform filed bankruptcy on July 13 under Chapter 11 case number 22-10964.

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