• BlockFi, a bankrupt crypto lending firm, has been granted court permission to pay close to $10 million in employee bonuses.
• The payments will be divided into three installments and will be paid to two tiers of employees, one receiving 42.5% of their base salary and the other receiving 9% of their base salary amount.
• The final payout must be completed within 12 months of court approval if the firm chooses to proceed with the employee retention plan.
Crypto lending firm BlockFi has recently been granted the court’s approval to pay close to $10 million in employee bonuses, despite its bankruptcy status. This news comes as a surprise, as the firm has been in a difficult financial position since the crypto market crash of early 2021.
The filing of the court document did not provide the exact number of employees eligible for the bonus, but reports suggest that BlockFi has about 125 employees. The payments will be divided into three installments and will be provided to two tiers of employees, one receiving 42.5% of their base salary and the other receiving 9% of their base salary amount.
The firm has justified its request by stating that its employees are likely to be hired elsewhere due to the aggressive competition in the market. The court filing also states that BlockFi has been „authorized, but not directed,“ to enact this employee retention program. This means that although the firm will not be required to pay all or any of its employees, it will need to complete the last of the three payouts within 12 months of court approval if it chooses to proceed with the employee retention plan.
This is an interesting move on the part of BlockFi, as it shows the company’s commitment to supporting its employees in spite of its financial struggles. It will be interesting to see what effect this will have on the company’s future, and whether or not the retention program will be successful in retaining the firm’s staff.