After news broke yesterday that PledgeMusic had $9.57 million in debt and assets worth $25,000 leaving "little prospect" that artists and other creditors will be paid, Hyepbot heard from two ex-staffers with intimate knowledge of the debacle.
Founder and former CEO Benji Roger's interview with a court-appointed receiver makes up the bulk of the report on the demise of PledgeMusic. Roger's had returned to the company twice in failed attempts to save the music crowdfunder.
"This is devastating for every artist affected," Rogers told Hypebot in an email. "I can't believe that they are left without what is owed to them. I am so sorry that I was not able to do more."
Another former staffer, who asked not to be named, found fault with assertions by Board members that they were unaware of problems because they were not involved in the day to day running of the PledgeMusic. "The company continued to operate as previously," the board asserted in interviews with the receiver.
"(Board member) Russ Reiger joined PledgeMusic day-to-day for a period in a general management function in the US early in 2018," according to the former staffer, "and was responsible for a failed initiative to pay back artists as early as April of that year. His statement... that he was not day-to-day is absolutely false."
Hypebot has not been able to independently confirm the claim.