Judge Michael Wiles also agreed that the names and jobs of the employees who might get the bonuses would be kept secret and paid by Crypto Lender Voyager.
A federal judge said that crypto lender Voyager Digital, filing for bankruptcy, can pay $1.6 million to more than 30 employees as a “retention” award.
Judge Michael Wiles also agreed to keep the names and titles of the employees who might get the bonuses secret.
Voyager asked for permission earlier this month, but Voyager’s organized creditors fought against the move on Friday. The U.S. Trustee’s Office, which is a bankruptcy watchdog run by the Department of Justice, also objected to the names and titles of the possible recipients being hidden. Its own filing suggested that these people might not be eligible for this type of bonus.
“The senior management team is not involved in this program, and most of the time, information about these people is unavailable to the public. We see that neither a creditor, a shareholder, or anyone else with a stake in the business has argued against the motion to seal. The only people who asked for this information were the UCC [Official Committee of Unsecured Creditors] and the United States Trustee’s office. No one who asked for the information has been kept from getting it “Michael Slade, a lawyer for Voyager from the firm Kirkland & Ellis, said during the hearing.
An attorney with the U.S. Trustee‘s office named Richard Morrissey called Voyager’s worries “speculative.” He said that hundreds of customers had asked his office questions about the process, such as whether or not executives would get a bonus.
Voyager had originally filed to pay $1.9 million to 38 employees, but Slade said that some of those employees have since left.
Slade said that the company planned to take steps to cut costs in the next month, which would save $4.6 million a year.
A lawyer from McDermott Will & Emery named Darren Azman represents the UCC. He said that one of the creditors’ main concerns is lowering costs, but Voyager’s annualized savings announcement addresses that concern.
During the hearing, a creditor who said she lost more than $450,000 questioned the idea that Voyager’s leaders could still get paid, but the judge said this wasn’t part of the current motion.
