• BlockFi has been granted court permission to pay nearly $10 million in staff bonuses.
• The program will see BlockFi pay up to $9.98 million to a few remaining employees in two tiers of payment.
• BlockFi has approximately 125 employees and the firm must complete the last of the three payouts within 12 months of court approval.
Crypto lending firm BlockFi has recently been granted court permission to pay nearly $10 million in staff bonuses. The filing does not use the word „bonus“ itself, instead referring to an employee retention program which will see BlockFi pay up to $9.98 million to a few remaining employees.
The employee retention program is split into two tiers of payment. The first tier will pay employees 42.5% of their base salary amount and the second tier will pay employees 9% of their base salary amount. This program will be administered in three installments. BlockFi must complete the last of the three payouts within 12 months of court approval, should it choose to proceed with the retention plan.
Though BlockFi is not required to pay all or any of its employees, the firm currently retains approximately 125 employees. This is according to recent reports. BlockFi initially justified its request by stating that its employees would likely be hired elsewhere due to the aggressive competition in the crypto lending space.
Statements from BlockFi’s legal representation suggest that the firm’s employees play a critical role in returning value to its customers and creditors. The court filing did not state how many employees are eligible for the bonus, however it is expected that the employee retention program will be beneficial for those involved.
This news comes at a time when BlockFi is facing bankruptcy. Despite its current financial situation, the firm has been granted court permission to pay its staff the bonuses. It will be interesting to see how the employee retention program plays out, and how it ultimately affects BlockFi’s customers and creditors.