Key Highlights:
Financial Turbulence at Bitmain 💼: Reports surfaced revealing Bitmain’s struggle with cash flow, leading to delayed employee salaries and unpaid 2022 bonuses. The firm even hinted at significant cuts in both base and performance-based wages.
Internal Discord Goes Public 📢: Bitmain’s management expressed displeasure and a stern stance against the leaks, highlighting potential legal actions against those disclosing company-sensitive information without authorization.
Not Alone in Economic Hardship 🌊: The crypto industry sees widespread instability, with major firms like Ledger and KuCoin also reportedly planning significant layoffs, reflecting the sector’s broader financial challenges and volatility.
In the rapidly evolving world of cryptocurrencies, the stability of even the major players can’t be taken for granted. Recent allegations have surfaced about Bitmain, one of the industry’s heavyweights, shedding light on internal financial woes that have led to employee dissatisfaction and public outcry.
Bitmain Fired Employees: What’s the Real Story? 🧐
Delayed Payments and Unpaid Bonuses: On October 8, whispers from Maimai Community, a renowned working social platform, highlighted that Bitmain, due to cash flow issues, was falling behind on salary disbursements. To add insult to injury, the promised bonus for 2022 remained elusive. A startling revelation was that not only might half of the base pay be at stake, but performance-based salaries could be on the chopping block as well.
Company’s Retaliation to Information Leak: No company appreciates having its dirty laundry aired in public. Bitmain’s response was no different. They retorted, as per BlockBeats, with a stern reminder, pointing out their rights to seek legal action against any individual leaking such sensitive details. They emphatically reiterated that the internal matters of the company are not to be shared without explicit consent.
Confirmation from Cryptanalyst Colin Wu: As if the waves weren’t already high enough, Colin Wu, a noted cryptanalyst, threw in his two cents, backing the claims. Citing internal memos, he confirmed that Bitmain was indeed struggling, having sent out notifications about these salary delays to its workforce on October 3. Dismal operating cash flow in September apparently pushed the company to the edge, affecting its commitments not only to its employees but also to its business partners.
Exclusive: Bitmain, the largest Bitcoin mining machine manufacturer, issued a notice on October 3 that since the company's operating cash flow has not yet turned positive in September, it has decided to suspend the payment of part of the salary of all employees in September.… pic.twitter.com/B4h4sWvQQS
— Wu Blockchain (@WuBlockchain) October 8, 2023
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The Bigger Picture: Crypto Layoffs in the Spotlight 💡
The Bitmain saga is but a drop in the ocean. The crypto realm has witnessed multiple layoffs, indicative of the underlying volatility of the industry.
Ledger’s Decision Amid Economic Strain: Ledger, a notable hardware wallet producer, is on the brink of reducing its workforce by a whopping 10%. The reasons? A challenging economic backdrop, which is forcing many to make such harsh decisions.
KuCoin’s Layoff Controversy: In a similar vein, rumors ran rife that cryptocurrency exchange KuCoin was gearing up to axe 30% of its manpower, totaling around 300 employees. The alleged reason? A drastic dip in profits due to the enforced KYC procedures. However, it’s worth noting that KuCoin’s top brass refuted these claims, denying any such massive layoffs.
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Sergio Richi
Editor, Logll Tech News