A New Jersey bankruptcy court has approved a motion by crypto lender BlockFi to pay its staff up to $10 million in a “retention program,” according to a January 27 filing.
The court filing revealed that the company could pay its staff $9.98 million in three installments over a 12-month period, divided into two tiers.
The first tier pays 42.5% of the staff’s base salary while the second pays 9% of their base salary. The number of employees eligible for the bonus and the qualifications for either tier was not specified in the filing. Still, media reports have estimated the number of employees at the company to be 130.
BlockFi had previously argued that the bonus was necessary to retain staff during the bankruptcy proceedings.
However, unsecured creditors of the company argued that the proposed bonus was “broader and more expensive” than other crypto firms.
Other bankrupt crypto companies like Celsius and Voyager have also requested retention programs for their employees, arguing that the payments would help retain their scarce talent.
