BlockFi CEO cashes out nearly $10 million in loans provided by FTX

2023-01-10 07:34:59

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ChainCatcher news, based on an overview of the ongoing court case proceedings, timeline, and proposed agenda released by the bankrupt crypto lending company BlockFi, thanks to a $400 million loan provided by FTX, BlockFi CEO Zac Prince was able to withdraw approximately $9.2 million from BlockFi in April 2022. Additionally, Prince withdrew another $1.36 million in August for tax purposes at the then-current market price.

BlockFi revealed that its management team "deployed their personal assets on the platform to trade, earn interest, and store various cryptocurrencies under the same terms of service as customers," thereby passing on customer interests in the FTX rescue plan to them. Furthermore, after a counterparty threatened to file a lawsuit, FTX provided an additional $15 million to BlockFi insiders in June. Due to the structure of the settlement, certain payments from BlockFi were routed through executives and ultimately paid to the counterparty. (The Block)

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