Voyager Digital, one of the most affected crypto companies due to the bear market, will pay $1.6million in bonuses for its top 34 employees. According to the firm, these workers are part of its accounting, legal and IT infrastructure units.
A lawsuit was filed two weeks ago alleging that Mark Cuban, an American billionaire, had lured inexperienced investors to invest in Voyager Digital’s Ponzi Scheme. The company requested the court to dismiss the case against Cuban.
Voyager Digital requested that 38 of its key employees receive \$1.9 million in bonus payments earlier this month.
Voyager stated that Voyager is now seeking to pay bonuses to its employees, at a time when many creditors are struggling to pay their basic personal expenses.
A coverage shows that 34 of the 328 employees were given $1.6 million in bonuses by the authorities. These individuals will be paid an additional 22.5% on top of their annual salaries. Because they manage the company’s accounting, legal and IT departments, they are essential to its operations.
In court filings, the lawyers for Voyager stated that “Voyager employees have valid reasons to be concerned about long-term employment status due to the ongoing sale process” and the uncertainty surrounding future operations.
They also stated that it was important to give extra money to the most important members of the team, as these professionals are supposed guide the company’s rescue plan.
Voyager Digital was primarily concerned about its relationship to Three Arrows Capital, a distressed crypto hedge fund. The bad debts owed by 3AC caused to stop trading, deposits and withdrawals on its platform at the beginning of July.
The company and Voyager Digital LLC, its two subsidiaries – Voyager Digital Holdings and Voyager Digital LLC – filed with the Southern District New York for Chapter 11 Bankruptcy. Stephen Ehrlich, CEO, expressed hope that customers would be granted additional protection and assets. The firm has already returned almost $220 million to users, which is 80% of their funds.
Mark Cuban, the owner of the NBA’s Dallas Mavericks, also participated in the scandal. A lawsuit claimed that Mark Cuban and Stephen Ehrlich encouraged young, inexperienced investors to invest their savings in the company through numerous promotions. Plaintiffs argued that Ehrlich and his friend Stephen Ehrlich encouraged individuals to invest all of their savings in the “unregulated” products.
Voyager’s lawyers quickly reacted and requested that the court stop the lawsuit against Ehrlich and Cuban. Lawyers explained that bankruptcy gives immunity to the firm and key figures in it from similar legal cases
