A US-based business development specialist claims that a company that paid him to work on cryptocurrencies now wants the coins back after a sharp rise in asset prices.
After a letter to Quentin fottrell of The money is at MarketWatch the anonymous employee, only known as “Crypto Confused” received a payment last August for the work that was contractually agreed in cryptocurrency. After that, the price of the token increased by 700%. Today the CEO sent them an email asking the employee to return the digital assets as they are not “no income generated for the company and no follow-up work carried out”, You can then bill the company for the hours worked in US dollars, not the current value of the cryptocurrencies.
“I’m not sure what to do”, said the clerk. “I’ve worked with this person for many years and they have a tendency to try to change the terms of payment after they agree on a particular way of working.”
Though Fottrell said so “Paying employees in cryptocurrency is a risky practice for both employers and employees.” Demanding repayment to employees or contract workers would likely open the company to legal action. U.S.-based employers must state the value of each crypto used for payment at the time of shipping in U.S. dollars as many tokens are volatile:
“If the value of cryptocurrency had fallen 700% since August 2020, would you want to pay for it in dollars? If it suddenly fell that amount today, would you still be with your employees?”
Although the letter does not state which token the employer used for the payment, Ether (ETH) would fit into the bill after rising 790% from $ 370 on Aug. 1 to over $ 3,300 at press time. Depending on the amount of crypto used for payment, Crypto Confused would likely need 20% of the profit under the current tax rate for investment income In the US, the Internal Revenue Service extended the deadline for filing taxes to May 17th that year.
Although some companies are using cryptocurrencies as a means of payment for services provided in the United States, legal issues still remain to be resolved. Twitter has hinted that it will look into the possibility of paying its 4,000+ employees in Bitcoin (BTC), but added that it would likely give them the option to accept crypto or fiat. In February, the Mayor of Miami was Francis Suarez, proposed a similar initiative for city workers.
Merrick Theobald, Vice President for Marketing BitPay, told Cointelegraph Magazine in March the company was “In any case, there is increasing demand from employees to get at least part of their salaries in Bitcoin.” due to the rise in prices as well as the increased awareness of cryptocurrencies. However, Paul Brody, global blockchain leader in Serious, said he thought it was unlikely that more companies would offer to pay employees in crypto and called it “a high risk proposal” given the volatility of some tokens.