Ailing cryptocurrency company, Voyager Digital – will reportedly pay $1.6 million worth of bonuses to it’s top staff. The firm stated that these staff are part of legal, accounting and IT infrastructure units. The crypto firm asked Bankruptcy court judges to approve $1.9 million in bonuses for the company to distribute to 38 of its key employees.


According to recent reports, authorities allowed the firm to pay 34 out of its 328 workers a total of $1.6 million in bonuses. These individuals are considered as vital to the firm’s operations because they manage the firm’s accounting, legal, and IT departments. They will now receive an extra 22.5% of their annual salaries.


The centre of Voyager Digital’s problems was its exposure to distressed cryptocurrency hedge fund Three Arrows Capital (3AC). Early in July, the firm halted all trading, deposits and withdrawals on their platform. Two weeks later, Voyager files for chapter 11 bankruptcy with the Southern District of New York. Voyager CEO – Stephen Ehrlich – was hopeful that the move would grant customers more protection and secure their assets.


The firm has managed to refund nearly 80% of users funds amounting to almost $220 million. The process has not been devoid of drama as a lawsuit arose two weeks ago alleging that American billionaire Mark Cuban lured green investors to invest in Voyager Digital’s crypto Ponzi scheme. The company however asked the court to dismiss the case against Mark Cuban.


Mark Cuban owns NBA team Dallas Mavericks and was also accused of encouraging young and inexperienced individuals to throw their life savings into Voyager’s unregulated products. Voyager’s legal team reacted quickly and asked the court to drop the proceedings against Mark Cuban and Stephen Ehrlich. The lawyers argued that the bankruptcy filing protects them from immunity from similar legal cases.


Featured Image Source:

Leave a Reply

Your email address will not be published. Required fields are marked *

Captcha Plus loading...