Celsius Rejected Offer To Use $3 Million To Retain Employees

Judge Martin Glenn rejected Celsius’s plan to use $3 million to retain employees. He called the move “completely unacceptable”.

As reported by Coindesk, on November 1, Federal Bankruptcy Judge Martin Glenn rejected Celsius Network’s plan to pay out nearly $3 million in retention bonuses to a group of allegedly key employees, with reasons for the lack of transparency in the public records of the bankrupt crypto lender.

“I’m telling you, I was shocked when I saw the redactions. I’ve never seen anyone try to redact everything. That’s not going to happen in this case,(…). Everything is blacked out – you’ve got to be joking”

Glenn said

The plan was petitioned on October 11 by Celsius lawyers, who claim the plan is necessary to prevent the company’s employees from jumping to other crypto platforms. Since declaring bankruptcy, the crypto company has seen the layoff of 102 employees.

The plan will pay a cash dividend of about $3 million, which will be distributed among 62 of the company’s 274 current employees.

The judge’s decision to deny KERP due to the opaque nature of the plan meant that creditors and other interested parties would not be able to identify the KERP participants.

“Without a sufficient public record, I’m not prepared to go forward,(…). I want anyone looking at the record to be able to see that the proposed awards are reasonable in relation to the current salary ranges of different categories of people.”

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