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

Distressed cryptocurrency lender BlockFi has filed with the bankruptcy court in the District of New Jersey wanting to get bonuses approval for retaining experienced staff. This move comes as BlockFi is working to retain key employees after filing for Chapter 11 bankruptcy protection last year, urging the court to approve the payment of employee bonuses, according to a statement. New Jersey-based cryptocurrency lender BlockFi has requested the court to approve bonus paychecks for its staff so the company can keep its talent throughout its restructuring process.

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 employees. Megan Crowell, the chief people officer at crypto lending firm BlockFi, has petitioned a court to allow bonuses for “key employees” amid Chapter 11 bankruptcy. BlockFi is urging the court to approve the payment of bonuses as the crypto lender struggles to retain staff following its filing for Chapter 11 bankruptcy protection.

The proposed bonus program aims to incentivize essential personnel to remain with BlockFi during this critical period. The company argues that retaining experienced staff is crucial for maximizing value for creditors and ensuring a smooth restructuring. The bankruptcy court will now consider BlockFi's request and determine whether the bonus program is justified.

The situation highlights the challenges faced by companies navigating bankruptcy, particularly in competitive industries like cryptocurrency, where talent is highly sought after. BlockFi hopes that the bonuses will provide the necessary incentive to prevent further employee departures and facilitate a successful reorganization.