A company paid an employee for their work done in cryptocurrency. However, after the price of the cryptocurrency skyrockets 700%, the employer wants the coins back, offering to pay the employee in US dollars instead.
Employer wants crypto back after 700% rise
Marketwatch posted a letter to The Moneyist columnist Quentin Fottrell on Monday from someone asking for advice on crypto payments he received from his employer. The Moneyist is a service that provides answers to all kinds of dilemmas, and Fottrell is the publication’s personal finance editor and columnist for The Moneyist.
The letter was signed “Crypto Confused”, who explained that he had done business development work for a tech startup “on a contract basis.” The company is still trying to generate its first dollar in sales, he noted.
“The purpose of the contract was to generate sales and it included a commission component, but it was understood that I would bill hourly for cold calls and emails, generation of proposals, organization of meetings, participation and management of pitches, etc. the goal of generating income, ”the letter explains, adding:
In August 2020, I received payment for the employment contract in cryptocurrency. Since then, cryptocurrency prices have exploded. From that point on, the crypto in which I received the payment increased by 700%.
As the price of the cryptocurrency the startup paid the employee skyrocketed, the CEO of the company wrote to the employee. He explained, “Since you have not generated any income for the business and are currently not doing any follow-up work, please return all crypto received in August 2020. You can invoice the business for the hours worked in USD. The letter declares.
Crypto Confused was unsure of what to do and asked for advice on whether to return some of the cryptocurrency for hours worked. He also did not specify which cryptocurrency he received.
In response to the letter, Fottrell insisted that he should not return cryptocurrency. “No. Alas no. No, thank you. Absolutely not. Ask me again in 2121,” he wrote, emphasizing:
Your employer should respect the terms of their contract … Even if the contract provided that you could be paid in dollars or in crypto, asking for reimbursement of wages is a whole other matter.
Fottrell added that “any effort to break this contract with guff over how employees haven’t done X or Y, which means they should be paid somehow, is at best a strong practice and opens it to trial at worst. “
Do you think the employee should return some of the cryptocurrency received to the employer? Let us know in the comments section below.
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