A report on Blockstream’s possible misappropriation of investor fund has been published on cashbleed .com. On the website, there are details on how the startup’s employees are enriching themselves by siphoning investor funds all in the name of “effective bonuses.” These bonuses are presented to company employees as a percentage of their payment but in BTC.
The facility is designed to ensure that BlockStream’s employees purchase the BTC at meager prices when compared to the values in the open market. The report actually suggests that the employees can access Bitcoin at costs as low as $350. The website that has laid this claim starts by saying that Blockstream “has created a sophisticated scheme to siphon millions of dollars worth of Bitcoin from company wallets into the personal wallets of its employees and founders.”
Greed Killing Blockstream
The writer goes on to say that this greed will be the end of Blockstream, noting that the startup cannot turn in profits to benefit its investors if the current conditions at the startup remain as is. Blockstream has investor assets worth $100 million raised from its supporters such as AXA, Mosaic Ventures, Khosla Ventures, and DG Lab Fund. However, instead of putting the funds into innovation, Blockstream stands accused of fraud perpetrated through bonuses. These bonuses have given the employees inflated salaries despite the startup making few waves than expected in blockchain innovation.