Bankrupt crypto lender BlockFi seeks approval for employee bonuses

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Bankrupt crypto lender BlockFi wants court approval to pay bonuses to its employees. “The war for talent remains active,” the company said, with employees being drawn in and out of the crypto industry. BlockFi, which filed for Chapter 11 protection in November, has lost talent to Google, Block and Walmart. LoadingSomething is being loaded.

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Bankrupt crypto lender BlockFi on Monday sought court approval to pay bonuses to its employees, saying it must retain experienced workers while it works on the reorganization, with workers already lured by lucrative deals .

“The job market for employees who have the qualifications and skills necessary to operate a sophisticated cryptocurrency trading platform is highly competitive. The war for talent remains active and participants have many opportunities within and outside of the cryptocurrency industry,” said Megan Crowell, Chief People Officer. said in a January 23 filing with the District of New Jersey Bankruptcy Court.

The company filed for Chapter 11 bankruptcy in November due to its large exposure to crypto exchange FTX, which crashed that month.

Crowell said in Monday’s filing that 11 employees have resigned from BlockFi and resignations have accelerated this month. “Key employees continue to receive offers, in some cases, for significantly higher compensation than their current compensation,” she said.

BlockFi employees are being offered jobs in and outside of the crypto industry, with Google, Block Payment Process, and Walmart as examples of companies that are successfully recruiting outside of BlockFi.

“Approval of retention programs is necessary to avoid much greater attrition of key employees that would put unsustainable pressure on debtors,” said Crowell, who joined BlockFi in October.

BlockFi told the court in November that retaining key employees was critical to its reorganization efforts and ultimately its viability as a trading platform. Its loyalty program aims to offer “crucial” employees compensation based on 50% of their base salary or compensation based on 10% of their base salary.

BlockFi’s denial of the motion came from the US Trustee and the official Unsecured Creditors Committee in separate documents on January 10.

“The Committee does not, in principle, oppose retention programs,” he said. “The Committee understands the need for certain key employees to be incentivized to stay to help the restructuring effort and preserve value. But every unnecessary dollar paid out by these programs diminishes distributions to creditors.”

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