The company stated that the payment was required to retain the services of its workers.
According to a January 27 filing, New Jersey bankruptcy court Judge Michael Kaplan authorized BlockFi’s demand to pay its personnel up to $10 million as part of a “retention program.”
A court document revealed that BlockFi might pay its employees $9.98 million in three-year payments. The payout for the bankrupt company was split into two categories, the first of which pays the workforce 42.5% of their basic income and the second 9%.
Neither the number of workers eligible for the incentive nor the requirements for each of the categories were specified in the court filing. According to media sources, there are 130 workers at the company.
Previously, the insolvent crypto lender said that it was necessary to pay its employees a bonus in order to keep their employment during the bankruptcy procedures.
According to Megan Crowell, Chief People Officer of BlockFi, there was fierce competition for talent, and the company’s employees “had numerous prospects within and beyond the cryptocurrency field.”
However, BlockFi’s unsecured creditors stated that the planned incentive was “more extensive and costly than prior cryptocurrency instances.”
Other insolvent crypto companies, like Celsius and Voyager, have also demanded staff retention plans. Both companies contended that the compensation would aid in retaining their workers’ scarce skills.
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