BlockFi executive asks bankruptcy court to “approve” bonuses to employees to retain talented people

Megan Crowell, chief HR officer of crypto lending company BlockFi, has filed a petition with the court to allow bonuses for “Primary employee” during the Chapter 11 bankruptcy proceedings.

In a Jan. 23 announcement in U.S. Bankruptcy Court for the District of New Jersey, Crowell said that without certain financial incentives, BlockFi may not be able to retain employees in a highly competitive industry. According to BlockFi executives, many employees “Highly likely to leave the company” amid Chapter 11 bankruptcy proceedings without being able to pay. “Competitive compensation” which may increase costs in the future.

“The talent war continues. And participants have many opportunities both within and outside the cryptocurrency sector,” Crowell said. It is of interest to employers in the financial industry, technology, and payment platforms broadly. Especially as these industries adapt their products and services to include cryptocurrencies and/or related technologies.”

“In the event that there are additional resignations I believe debtors will struggle to recruit new employees who can effectively work for the BlockFi platform. This greatly limits the debtor’s options in these Chapter 11 cases. Hiring new employees will incur substantial operational and financial costs to debtors.”

BlockFi filed for bankruptcy on Nov. 28, saying at the time it had about $257 million on hand and had filed for “Make a plan for the retention of key employees. This ensures that the company maintains internal staff resources trained for business-critical functions.” According to Crowell, the proposed plan It will give employees a bonus of 20-50% of their salary if they remain at the company as of January 31.

Crowell reports that some “essential” employees have accepted offers from Google, Block and Walmart following their bankruptcy filing in November.

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