• Bankrupt crypto lending firm BlockFi has been granted court permission to pay nearly $10 million in staff bonuses.
• The payments will be distributed to employees in three installments, with two tiers of payment.
• BlockFi initially justified its request by stating that its employees would likely be hired elsewhere due to aggressive competition.
BlockFi, a bankrupt crypto lending firm, has been granted court permission to pay nearly $10 million in staff bonuses, according to a filing dated Jan. 27. The firm, which currently retains around 125 employees, will distribute the payments in three installments with two tiers of payment. The first tier is set to pay employees 42.5% of their base salary amount while the second tier will pay 9% of their base salary amount.
The court filing did not state how many employees are eligible for the bonus, although BlockFi has stated that its employees would likely be hired elsewhere due to aggressive competition. The firm initially justified its request by arguing that its employees play a critical role in returning the company to profitability and that without the bonus, the firm would risk losing top talent.
The bonus payments are set to be completed within 12 months of court approval. The filing also notes that BlockFi has been „authorized, but not directed,“ to enact this employee retention program. The company has not confirmed whether or not it will choose to proceed with the bonus plan, but it is apparent that the firm is exploring all available options in order to remain competitive and return to profitability.
BlockFi’s financial situation has been precarious since the company’s bankruptcy filing in late 2020. The firm has been attempting to restructure its debt and has recently undertaken a series of strategic measures, such as the proposed bonus plan, to help reduce its financial burden.
It is unclear how the bonus payments will affect the company’s financial situation in the long term, but its clear that BlockFi is doing everything it can to remain competitive and return to profitability. The firm’s efforts to retain employees by offering bonuses is a testament to the importance of its staff and the value they bring to the company.