BlockFi Urges Bankruptcy Court to Approve Bonuses Amidst Struggle to Retain Staff

Joshua Ramos
Source: CryptoSlate

According to The Block, BlockFi has urged the court to approve bonuses amid its struggle to retain staff following its bankruptcy fillings. The cryptocurrency lender filed for Chapter 11 bankruptcy protection. Thus, they have found it difficult to incentivize talented staff to stick with the platform.

The lender filed a declaration on Monday that pleaded with the court to help provide that incentive on what was dubbed a “war for talent” in the industry. Moreover, the lender filed at the end of November and is seeking the implementation of a retention program for top employees.

BlockFi Seeks Approval for Bonuses

Bankruptcies have been a constant reality for the crypto sphere in 2022; they have continued to play out in the first month of the new year. As a plethora of companies and platforms deal with the fallout of Chapter 11 bankruptcy proceedings, one crypto lender is seeking aid in maintaining their workforce.

In a declaration filed by Chief People Officer Megan Cromwell, BlockFi has urged the Bankruptcy Court of New Jersey to approve a bonus program amid their struggle to retain top talent.

Cromwell stated, “Despite an incredibly turbulent time in the digital asset industry, the opportunities for participate elsewhere have not dried up.” Adding, “The war for talent remains active and the participants have many opportunities inside and outside the cryptocurrency sector.”

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BlockFi is attempting to move forward with a retention program for employees that still remain with the company. That program would offer staff compensation a percentage of the employee’s base salary, dependent on their role in the company.

The declaration has been objected to by both the U.S. Trustee and the official committee of unsecured creditors, according to The Block. Moreover, the hearing for the motion has been rescheduled repeatedly. Subsequently, resulting in “additional personnel loss and increased concern regarding the receipt (and timing) of retention payments,” according to Cromwell.