• BlockFi, a bankrupt crypto lending firm, has been granted court permission to pay nearly $10 million in staff bonuses.
• These payments will be distributed to eligible employees in three installments and consist of two tiers of payment.
• The court filing did not state how many employees are eligible for the bonus, but recent reports suggest that the firm has about 125 employees at present.
Crypto lending firm BlockFi has been granted permission to pay staff bonuses of up to $10 million, despite being in the midst of bankruptcy proceedings. The court filing, dated Jan. 27, states that the firm has been “authorized, but not directed” to enact an employee retention program. This program will distribute payments to a few remaining employees in three installments, consisting of two tiers of payment.
The first tier of payment will see employees receive 42.5% of their base salary amount, while the second tier will pay out 9% of their base salary. The filing did not state how many employees are eligible for the bonus, but recent reports suggest that the firm has about 125 employees at present. BlockFi justified its request for the bonus program by stressing the need for employee retention in the face of aggressive competition.
Though BlockFi 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 retention plan. This bonus program stands in stark contrast to the normal procedure in bankruptcy proceedings, which usually involves a large portion of staff being laid off.
This decision could prove beneficial to BlockFi in the long run, as retaining staff members allows the firm to maintain its operations while it works to recover from its current financial woes. It also shows that the firm is committed to its employees, and is doing what it can to ensure that they are taken care of during these difficult times.
Overall, this development is an encouraging sign for the future of BlockFi, and indicates that the firm may be able to rebuild itself and continue operations in the future. Time will tell whether this decision will benefit the firm in the long run, but for now, it serves as an encouraging sign that BlockFi is doing what it can to stay afloat.