Bankrupt crypto lender Celsius wins approval to give out bonuses to stem exodus

BANKRUPT cryptocurrency lender Celsius Network won court approval to give out bonuses totalling as much as US$2.8 million to workers in a bid to keep them from quitting.

The payments will go to non-executive employees helping Celsius keep the lights on while the company works to exit bankruptcy, according to a plan approved by US bankruptcy judge Martin Glenn on Monday (Dec 5). Celsius needs to file a restructuring plan by Feb 15, according to an arrangement also approved in court on Monday.

Celsius employees have quit in droves since the company entered bankruptcy in July, a lawyer for the crypto lender said in court. About 170 Celsius employees remain, down from about 370 at the outset of the Chapter 11 proceedings.

“We’re getting really down to the nub of what we need to continue to function,” Ross Kwasteniet of Kirkland & Ellis said in the hearing.

Most of the so-called retention payments will be no more than US$75,000, according to court papers. Salaries for those eligible for the bonuses range from as low as US$25,000 to a high as US$425,000.

Glenn had earlier rejected the bonuses, saying Celsius didn’t provide enough public information about the payments. Celsius amended its request with more details following that ruling. BLOOMBERG