Employer paid worker in crypto, then demanded it back when price rose
May 3, 2021. Summarized by summa-bot.
Compression ratio: 33.5%. 1 min read.
After prices rose significantly, an employer demanded that an independent contractor return crypto payments in exchange for a far lesser amount in fiat.
A United States-based business development specialist has claimed that a company that paid them for contract work using cryptocurrency now wants them to return the tokens following a significant rally in the asset's price.
According to a letter sent to Quentin Fottrell of MarketWatch’s "The Moneyist," the unnamed employee — known only as “Crypto Confused” — received payment for the contract work in cryptocurrency in August 2020, following which the price of the token surged 700%.
The day the employee wrote the letter, the CEO emailed them demanding that they return the digital asset because they did not "generate any revenue for the company and are not currently doing any follow up work," after which they can invoice the company for the hours worked in U. S. dollars — not the current value of the cryptocurrency.
Though Fottrell asserted that “paying employees in cryptocurrency is a risky practice for both the employer and the employee,” asking for payment back, whether from salaried employees or contract workers, would likely open the company up to a lawsuit.