BlockFi’s employee bonus plans draw objection from committee

By Sarah Lizee

Olympia, Wash., Jan. 17 – BlockFi Inc.’s motion seeking approval of a key employee retention plan (KERP) and a target retention plan (TRP) drew an objection on Friday from the official committee of unsecured creditors, according to documents filed with the U.S. Bankruptcy Court for the District of New Jersey.

The committee said that while it doesn’t object to retention plans in general, the numbers in these plans are disproportionate and above-market, and the pool is over-inclusive.

As previously reported, the plans have also drawn an objection from Regions 3 and 9 U.S. trustee Andrew R. Vara.

The KERP seeks to include 95 employees, which is most, if not all, of the company’s remaining employees, and the TRP seeks to include 32 employees.

The cost of the KERP is around $9.9 million in total, and the cost of the TRP is about $2.43 million in total.

The participants under the KERP will receive on average $104,211.88 as a bonus, and the participants under the TRP will receive on average $75,781.25 as a bonus.

Based in Jersey City, N.J., BlockFi is a crypto financial services company. The company filed bankruptcy on Nov. 28 under Chapter 11 case number 22-19361.

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