Bitmain, the largest Bitcoin mining equipment manufacturer, was recently accused of suspending salary payments to its employees.
According to data from the professional social network Maimai Community, some employees claimed that Bitmain had unpaid wages as of October 8 due to cash flow issues.
Additionally, they stated that the 2022 bonus still needed to be paid. All employees’ base salaries might be withheld in full, as well as bonuses and performance-based wages.
The corporation’s management was not happy that employee salary information had become public knowledge. Bitmain also said it reserves the right to pursue additional legal liabilities against all parties involved, according to BlockBeats.
The corporation’s representatives advised staff again to only share company information with outside parties with authorization. Cryptoanalyst Colin Wu previously revealed that Bitmain intended to withhold payments, partially claiming financial issues, citing internal correspondence at the business.
He claimed that on October 3, notice of the compensation postponement was sent to all firm personnel.
Operating cash flow remained negative in September, claims Bitmain management. In dire situations, this undermines the company’s capacity to meet its obligations to counterparties, creditors, and employees and causes a decrease in account money.
In light of the challenging economic climate, Ledger, a manufacturer of hardware wallets, also plans to fire 10% of its workforce in addition to Bitmain. According to reports, the cryptocurrency exchange KuCoin plans to lay off 300 people, or 30% of its workforce.
Due to a substantial decline in profits brought on by the introduction of the mandated KYC procedure, the corporation was forced to take these actions. Later, the CEO of KuCoin refuted rumors that the company would fire 300 employees.
