• BlockFi, a bankrupt crypto lending firm, has been granted court permission to pay nearly $10 million in staff bonuses.
• These payments will be distributed in three installments, with two tiers of payment.
• BlockFi is estimated to have about 125 employees at present.
Crypto lending firm BlockFi has been granted court permission to pay nearly $10 million in staff bonuses, in spite of their bankruptcy filing. This payment will be distributed in three installments, with two tiers of payment. The first tier will pay employees 42.5% of their base salary amount, while the second tier will pay employees 9% of their base salary amount. The court filing did not state how many employees are eligible for the bonus, but BlockFi is estimated to have about 125 employees at present.
The court filing noted that BlockFi has been „authorized, but not directed,“ to enact this employee retention program. This means that BlockFi will not be required to pay all or any of its employees, but if they choose to proceed with the retention plan, then the final of the three payouts must be completed within 12 months of court approval.
BlockFi initially justified its request by stating that its employees would likely be hired elsewhere due to aggressive competition in the market. Statements from BlockFi’s legal representation suggest that the firm’s employees play a critical role in returning the company to profitability.
The payment of these bonuses could potentially benefit the employees of BlockFi, as well as the company itself. It could also be seen as a positive sign for other businesses that may be facing bankruptcy.
